The DMO comes to market........>

GILT AUCTION PREVIEW: The DMO comes to market today to issue GBP3.25bln of the

1.50% Jul-26 gilt.

- With the DMO holding four short auctions this quarter, it has taken the

opportunity to move away from building up the 0.625% Jun-25 5-year benchmark to

tap the 1.50% Jul-26 gilt. The last time this issue was auctioned was February

2017 when the issue was considered the 10-year benchmark. The issue currently

trades at a premium of 3.4bp relative to the 0.625% Jun-25 gilt, and has stuck

to a broadly 1-4bp range since October. Recent short auctions have been well

covered with 8/10 of the auctions this year having a bid-to-cover of at least 2x

including all of the previous four auctions. The size of this auction is a

little larger than the recent auctions, but some of those recent auctions have

seen the full 15% PAOF taken down. The size of this auction excluding the PAOF

is not any larger than those auctions including the PAOF.

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

- A further GBP487.5mln nominal will be available to successful bidders through

the PAOF later today.