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Strong 15y gilt auction

GILT AUCTION RESULTS
  • The auction of the 3.75% Jan-38 Gilt saw strong demand with the fourth highest bid-to-cover at a nominal auction of 2023. (The other auctions to exceed today's 2.97x bid-to-cover were either benchmark 10-year auctions or green).
  • The tail of 0.4bp is also relatively tight, the highest for over 3-month excluding the 1.125% Oct-73 gilt tender.
  • There was only a minor movement higher in the price of the 3.75% Jan-38 gilt on the result publication, and we now trade close to the LAP of 88.526.

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