The Debt Management Office.....>

GILT AUCTION PREVIEW: The Debt Management Office will tap the 0.875% Oct-29 Gilt

on Tuesday for Stg. 2.75bln.

- RV/HISTORY: Mirroring the trajectory of yields in core sovereign bond markets,

the gilt curve has bull flattened since the beginning of the year on the back of

a spike in global political risk amid a renewed deterioration in US-Iran

relations. With the UK Conservative Party securing a strong parliamentary

majority in the December general election, uncertainties around the direction of

travel for Brexit have been reduced, although the economic impacts remain an

unknown quantity. The 0.875% Oct-29 Gilt serves as the current 10-year benchmark

and trades at a yield of 0.736%, off a recent high of 0.867% on December 30 and

19bp inside the comparable GBP swap.  

- TIMING: Auction results are due out around 1030GMT