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

GILT AUCTION PREVIEW: The DMO will come to the market today to sell GBP3.25bln

nominal of the 0.875% Oct-29 gilt.

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

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

all been for GBP2.75bln with the full PAOF proceeds taken in 5/8 auctions,

leaving a nominal GBP24.1bln outstanding. The last four 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 0.50%, 2bp

lower than the prevailing yield. Today's auction is larger at GBP3.25bln and we

note that this week's 1.50% 2026 auction was also a bit larger than recent short

auctions and saw a worse bid-to-offer and larger tail than other recent short

auctions. The auction will therefore be closely watched to see how the larger

medium auction size is taken down.

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.