The Debt Management Office.....>

GILT AUCTION PREVIEW: The Debt Management Office will re-open the 1.00% Apr-24

Gilt on Tuesday and will target a sale of Stg3.0bln.

- RV/HISTORY: Although UK-specific political risks have subsided in the

short-term as the Brexit cliff edge has been pushed back until October,

intensifying global headwinds have kept gilts well bid. Yields have dropped

sharply since the beginning of May and the curve has flattened. The 10-year

yield has fallen to 0.867% from a May high of 1.218%, while the 2s10s spread has

narrowed to 27.7bp from 42.1bp. The 1.00% Apr-24 Gilt serves as the 5-year

benchmark and currently trades at a yield of 0.620% - the lowest since September

2017 and 31.9bp inside the comparable EUR swap. Relative to the comparable Bund,

the 1.00% Apr-24 Gilt trades 120bp outside, with the spread narrowing ~18bp from

its widest level in May. 

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