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

GILT AUCTION PREVIEW: The DMO come to the market today to sell GBP250mln nominal

of the 0.125% Aug-48 index-linked gilt via a tender.

- This will be the first tender for the issue which has previously seen seven

auctions after being originally launched through two syndicated offerings. It is

considered the 30-year benchmark linker. The total nominal amount in issue after

the tender will be close to GBP10.2bln. The previous auction was for double the

size of today's tender at GBP500mln and the majority of the previous auctions

have seen healthy bid-to-cover ratios of over 2x, with the exception of the June

2019 auction that saw a larger GBP700mln issued. The real yield at the time of

writing is -1.95%, around 12bp lower than the yield at the last auction in

December.

RESULTS: Results will be announced shortly after the auction closes at 10:30GMT.

Note: The proceeds of today's auction will be taken from the unallocated portion

of issuance which stands at GBP1.7bln ahead of today's tender.