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The 0.125% Nov-36..............>

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: The 0.125% Nov-36 index-linked gilt will be sold for
GBP900mln tomorrow.
- This is the second long-dated linker auction of the fiscal year following the
auction of the 0.125% Aug-48 four weeks ago which saw a strong bid-to-cover of
3.36x. The last auction of the 0.125% Nov-36 gilt was back in February when
GBP800mln was on offer with a bid-to-cover of 2.54x and a real yield of -2.263%.
We note that real yields have generally fallen through most of May but have
shown some signs of recovery in June. Despite this recovery, prevailing real
yields for the 0.125% Nov-36 gilt are still below -2.50%.
RESULTS: Auction results will be released shortly after the auction closes at
10:00BST with a further GBP225mln nominal available through the PAOF to
successful bidders.

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