The DMO will come to the.......>

GILT AUCTION PREVIEW: The DMO will come to the market today to sell GBP2.75bln

nominal of the 0.875% Oct-29 gilt.

- This will be the eighth auction of the gilt after it was launched in June with

the issue representing the 10-year benchmark. The seven previous auctions have

all been for GBP2.75bln with the full PAOF proceeds taken in 5/7 auctions,

leaving a nominal GBP21.4bln outstanding. The last three auctions of the gilt

have been very strong and saw bid-to-cover ratios ranging from 2.2-2.6x with

tight tails of 0.2-0.3bps. The yield on the previous auction was 0.79%, almost

30bp higher than the prevailing yield of 0.51%. Gilt prices, like those for many

other core government bonds, have risen substantially recently, helped by safe

haven flows on the back of the coronavirus. Furthermore, gilts have been helped

by the dovish turn taken by some members of the BoE's Monetary Policy Committee,

with markets now pricing around a 50/50 chance of a 25bp cut this week.

- RESULTS: Results will be announced shortly after the auction closes at

10:30GMT.