On August 19 the DMO will hold quarterly......>

GILTS: On August 19 the DMO will hold quarterly investor and GEMM consultation

meetings to discuss issuance for Oct-Dec. The DMO is proposing 2 short, 3

medium, 2 long and 3 linkers auctions while also consulting on syndications.

- Shorts (2 auctions): We would be surprised if the DMO did not auction the

0.625% Jun-25 gilt at both auctions. The DMO has said it envisages at least one

auction for the issue.

- Mediums (3 auctions): Again, we would be surprised if the DMO chose to auction

anything other than the 0.875% Oct-29 gilt. It has said it expects to auction

this issue at least twice.

- Longs (2 auctions): We expect the 1.75% Jan-49 gilt to be issued at least once

and for the second auction to either be another issue of the 1.75% Jan-49 or the

1.75% Jul-57 gilt. The DMO issued no expectations here.

- Linkers (3 auctions): We would expect 1-2 auctions of the 0.125% Aug-28 linker

and one auction of either the 0.125% Aug-41 or 0.125% Aug-48 linker.

- Syndication: We expect the syndication to be an index-linked gilt, most likely

the 0.125% Nov-56 or the 0.125% Nov-65 linker.