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Strong auction

GILT AUCTION RESULTS
  • Strong auction sees the 3.75% Jan-38 gilt match its intraday high of 96.096 (marginally above the average auction price of 96.093) but notably above the 95.913 seen around 18 mins before the auction close. Tight tail of 0.1bp again. Bid-to-cover marginally lower than in June but still over 3x.
  • Gilts futures had already been moving off those intraday lows ahead of the auction window closing and were also helped by the disappointing German ZEW survey.

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