REPEAT: GILT AUCTION PREVIEW: Today the DMO will.....>

GILT AUCTION PREVIEW: REPEAT: Today the DMO will issue Stg500mln nominal of the

4.25% Dec-46 in a tender operation. The gilt was first issued in 2006 and was

last auctioned in June 2016 ahead of the Brexit referendum.

- BACKGROUND: The 4.25% Dec-46 has traded in a tight range vs the surrounding

issues which mature in the 2045-2049 area with this part of the curve almost

totally flat. However, it will not have escaped anyone's attention that

25-30-year yields have fallen substantially globally, and there is no exception

for gilts. The last auction of the 1.75% Jan-49 gilt saw a bid-to-cover ratio of

2.02 with a tail of 0.4bps. We would expect a decent bid-to-cover in today's

auction and a tight tail. This would be a stark contrast to yesterday's 30y Bund

auction which was technically uncovered and saw a real bid-to-cover of only

0.41x.

RESULTS: Results will be published shortly after the tender closes at 10:30BST.

NOTE: As this is a tender, there will be no non-competitive bidding and no PAOF

facility.