The Debt Management Office.....>

GILT AUCTION PREVIEW: The Debt Management Office will tap the market for

Stg.3.0bln on Tuesday. On offer is the 1.00% Apr-24 Gilt.

- BACKGROUND: The 1.00% Apr-24 Gilt is the current 5-year benchmark, which was

last tapped on March 6 with Stg.3.0bn allotted at an average yield of 0.966% and

bid-to-cover ratio of 1.99x.

- RV/HISTORY: Uncertainty around Brexit and the looming cliff-edge present an

unfavourable backdrop for this week's gilt issuance. Indeed, while the economic

dataflow has remained relatively robust, the political crisis is dominating

investor sentiment. Long-end yields have been pushed lower on the back of

intensifying Brexit risks and global economic headwinds, with the curve also

flattening over the last six months. The 1.00% Apr-24 Gilt trades at a yield of

0.767%, down from 1.000% at the beginning of the month and 32.5bp inside the

comparable GBP swap.

- TIMING: Results are due shortly after the auction closes at 1030BST.