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

GILT AUCTION PREVIEW: The DMO will come to the market today to sell GBP2.25bln

nominal of the 4.75% Dec-30 gilt.

- This will be the first time that this gilt has been sold since May 2015. The

benchmark 10-year gilt (the 0.875% Oct-29 gilt) was last auctioned on 25 Feb for

GBP3.25bln with a bid-to-cover ratio of 2.16x and tail of 0.4bp, slightly weaker

than the four prior auctions which saw bid-to-cover ratios ranging from 2.2-2.6x

with tight tails of 0.2-0.3bps. On an RV basis, the spread between the 4.75% and

the 0.875% Oct-29 has narrowed, with the broad range of 1.5-3bp discount to the

Oct-29 gilt reducing to 0.5bp at the time of writing. This has occurred as

yields have fallen substantially over the past couple of weeks as coronavirus

concerns continue to escalate.

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

- A further GBP337.5mln nominal will be available to successful bidders through

the PAOF later today.