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Strong 20-year auction; gilt futures move higher

GILT AUCTION RESULTS
  • That was the first 20-year gilt auction in quite some time and saw a very strong bid-to-cover of 3.62x with a tight tail of 0.2bp while the lowest accepted price of 104.688 was at a decent premium to the 104.581 secondary market price.
  • This has seen the price of the 4.75% Oct-43 gilt move to levels last seen around 9:30GMT.
  • Gilt futures also jumped on the auction results - and are now around 10-15 ticks higher post-auction.

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