On Feb 1 the UK DMO.......>

UK T-BILL AUCTION PREVIEW: On Feb 1 the UK DMO come to market for Stg4.0bln at

their weekly tender. On offer are 1-month Apr 3 bill for Stg0.5bln, 3-month May

7 bill for Stg2.0bln, and the 6-month Aug 8 bill for Stg1.5bln.  

- HISTORY: For comparative purposes, at last weeks tender:

Stg0.5bln was allotted in 1-month bills, average yield 0.70%, cover 4.05x. 

Stg2.0bln was allotted in 3-month bills, average yield 0.75%, cover 2.48x. 

Stg1.5bln was allotted in 6-month bills, average yield 0.79%, cover 1.68x. 

- RV/BACKGROUND: Short Sterling moved higher across the strip on Thursday after

a dovish Fed statement helped markets rally across Europe. Whites find

themselves 1.5-2 ticks higher on the week, whilst Reds, Greens and Blues are all

2-2.5 ticks higher. 

The UK govt are keen to deliver Brexit by Mar 29, today binning the Feb recess. 

The UK Markit manufacturing PMI data is due at 0930GMT. The December reading was

a strong 54.2, much of it attributed to pre-Brexit stockpiling opposed to

stronger underlying macro trends. 

- TIMING: Results will be due shortly after the auction closes at 1100GMT.