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RBC says that they expect the launch of the...>

GILTS
GILTS: RBC says that they expect the launch of the new 5-yr 1.0% Apr-24 Gilt to
be met with good demand and for that sector to outperform further on the curve
over the coming months due the upcoming EU summit in October where a withdrawal
deal is hopefully signed.
- RBC say the new Apr-24 Gilt is trading around 1.6bps cheaper than the 2.75%
Sep-24 Gilt in the grey market, "somewhat wider than our estimate of 1bp" and is
around 3.5bp over SONIA, falling "slightly short of the 5bp pick up that is seen
a pivotal point for asset swap demand".
- The Jul-18 Gilt redemption and large month-end extensions "are also likely to
assist the auction" RBC add.

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