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Strong auction

GILT AUCTION RESULTS
  • It was a strong auction of the 1.125% Jan-39 gilt with the LAP of 68.579 in excess of the pre-auction mid-price of 68.466.
  • The average price of 68.600 was also higher than the prevailing price for around 20 minutes ahead of the auction cut-off. The tail of 0.2bp was very tight.
  • On the publication of the results the price of the 1.125% Jan-39 gilt moved higher but failed to reach the average auction price. The majority of those gains have been reversed now (in line with the general move lower in core FI) but we continue to trade slightly above the pre-auction mid-price.

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