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Strong auction

GILT AUCTION RESULTS
  • That's a strong gilt auction - with a strong bid-to-cover of 2.77x (strongest at a 10y auction since June 2022).
  • The tail of 0.3bp is also tight, particularly considering that it is a launch auction. We have seen 0.3bp tails at 10y auctions in October but the launch of the previous 10-year gilt, the 1.00% Jan-32, in December 2021 saw a tail of 1.9bp.
  • Gilt futures moved a few ticks lower just ahead of the bidding deadline but are now back to prevailing levels ahead of the auction.

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