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Relatively weak auction; but stronger than yesterday's linker auction

GILT AUCTION RESULTS
  • A relatively weak 10-year green gilt auction with a relatively wide tail of 1.3bp (in line with the September auction) and the LAP of 74.483 coming in below the intraday low on the secondary market of 74.529 (Bloomberg data).
  • However, the auction was not as weak as yesterday's linker auction, and although it was relatively weak overall it wasn't that much weaker than the last auction (in September) of this particular gilt (the 0.875% Jul-33 Green Gilt).
  • Gilt futures fell around 9 ticks on the release of the results after moving around 15 ticks higher when the bidding window closed - and are now trading back around levels seen around 9:45GMT - before the concession started to be priced by the market.

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