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

GILT AUCTION PREVIEW: The DMO comes to market today to issue the GBP1.1bln

nominal of the 0.125% Aug-28 linker.

- This will be the final linker auction scheduled for this fiscal year. The

0.125% Aug-28 linker has been auctioned four times already this fiscal year with

all other auctions of the issue being fairly strong. The last auction saw a

bid-to-cover of 2.59x with a real yield of -0.244%. Real yields have fallen over

the past couple of weeks on the back of the coronavirus starting to spread

across Europe. Yesterday, real yields on the 0.125% Aug-28 linker hit their

lowest level since mid-October. On an RV basis, the real yield on the 0.125%

Aug-28 trades 3.9bp higher than the 0.125% Mar-29 linker. The two linkers have

traded very closely to each other since mid-October with the range of the real

yield spread 2.8-4.5bp. 

RESULTS: Results are expected shortly after the auction closes at 10:30GMT. An

additional GBP165mln will be on offer to successful bidders through the PAOF.