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Strong auction

GILT AUCTION RESULTS
  • Strong gilt auction with a very tight tail of 0.1bp and the LAP above the pre-auction mid-price (albeit still below the price 6 minutes ahead of the cutoff.
  • The 3.75% Oct-53 gilt has rallied following the auction and now trades above 98.00 (the auction average price was 97.967).
  • Wider gilt futures not really being impacted by the auction too much, but have paused their move lower.

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