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The Debt Management Office.....>

GILT AUCTION PREVIEW: The Debt Management Office will tap the market for
Stg2.75bln on Tuesday. On offer is the 1.625% Oct-28 Gilt.
- BACKGROUND: The 1.625% Oct-28 Gilt is the 10-year benchmark, which was last
tapped on February 14 with Stg.2.25bln allotted at an average yield of 1.16% and
bid-to-cover ratio of 2.06x.
- RV/BACKGROUND: The gilt curve has flattened since October as concerns about
global economic growth have been compounded by UK-specific Brexit uncertainty.
It goes without saying that the political and economic backdrop is not
favourable for this week's gilt auction given that the UK is officially due to
leave the EU on April 12, and still parliament has not passed PM May's
withdrawal agreement. The 10-year benchmark currently trades at a yield of
1.108%, up from a recent low of 0.986% on March 25 and 20.1bp inside the
comparable GBP swap.
- TIMING: Results are due shortly after the auction closes at 1030GMT.   

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