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The UK Debt Management.........>

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) taps Stg1bln of the
0.125% Mar-2026 index-linked Gilt this morning. 
- BACKGROUND: The DMO currently does one linker tap per month and the Stg1bln
being sold is a fairly normal size. 
- RV: The issue currently offers a -1.832% real yield, compared to -1.915% 1Y
average. Citi write that "10yr break-even is cheap vs 30yr: IL26 break-even has
cheapened vs IL46 break-even since Jan'17" 
- HISTORY: At the last tap of this 2026 I/L Gilt issue on Feb 15, the DMO sold
Stg1bln at an average yield of -1.969%, with a massive bid-to-cover ratio of 3.1
times. 
- RESULTS: Auction results are due at around 0935GMT.

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