Free Trial
USDCAD TECHS

Finds Support At The 20-Day EMA

US

Late Corporate Credit Update

US TSYS

Late Eurodollar/SOFR/Treasury Option Roundup

AUDUSD TECHS

Bear Flag

US TSY OPTIONS

BLOCK, 10Y Midcurve Ratio Call Spd

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Preview: New 0.125% Mar-51 linker

GILT SYNDICATION
  • This week the DMO will launch a new 30-year index-linked gilt with a coupon of 0.125% and maturity of March 2051. As usual, we would expect the syndication to take place today (on a Tuesday).
  • This will be only the second new index-linked gilt sold since July 2018 (following the launch of the 10-year 0.125% Aug-31 linker at the end of January). Furthermore, this is the first index-linked syndication to be held since November 2019 (with uncertainty from the RPI review reducing linker supply substantially). Indeed, the last syndication that saw a new linker launched was the previously mentioned July 2018 launch of the 0.125% Aug-41.
  • We expect demand to be strong. With real yields a little below -2%, but without a recent linker syndication to benchmark from we look for anywhere between GBP2.0-4.0bln nominal to be sold.
  • Timings: We note that the last two syndications have seen books open at 9:00GMT (rather than the 8:30 seen in the other syndications this fiscal year). There was then an update at 9:30 with the spread set at 9:45 before books closed at 10:00. The size tends to be set 30-60 minutes after books close (in the most recent two 33-35 minutes after close). Pricing then is usually between 12:30-13:20.
  • Joint bookrunners: BofA Securities, Citi, Santander and UBS Investment Bank.

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.