The DMO come to the market.....>

GILT AUCTION PREVIEW: The DMO come to the market on Tuesday to sell Stg2.75bln

nominal of the 0.875% Oct-29 gilt.

BACKGROUND/HISTORY: This will be the fourth auction of the gilt after it was

launched in June with the issue starting to become recognised as the new 10-year

benchmark. The three previous auctions have all been for Stg2.75bln with the

full PAOF proceeds taken in the first two auctions, leaving a nominal Stg9.1bln

outstanding. Bid-to-cover has generally been around 2x with a tail of 0.5bps at

the previous two auctions. The yield on the previous auction was 0.548%, over

10bps below the 0.650% prevailing at the time of writing. The issue, and gilts

in general, have been very volatile over the past few days as the probability of

an imminent Brexit deal has fluctuated.

TIMING: Results will be released shortly after the close of the auction around

10:30BST.