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

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) taps the 6Y Gilt 0.75%
2023 Gilt Thursday for Stg2.75bln. 
- BACKGROUND: There are no coupons or redemption payments in the Gilt market for
quite some time. This is still a fairly new Gilt, having only been first issued
in July.
- RV: Outright, Gilt yields are generous compared to recent history but this is
a consequence of the BoE upping the rate hike rhetoric, with the next decision
on Nov 2. Switches from shorter maturity debt, like the 5Y benchmark 0.5% Jul-22
do not look particularly attractive at present. However, the spread to
equivalent-maturity German paper exploded 25bp in September and so might attract
some switches.
- HISTORY: At the last tap on Aug 23, the DMO sold Stg2.75bln total at an
average yield 0.635%, bid-to-cover ratio 2.9 times and it tailed 0.1bps. 
- RESULTS: Auction results are due around 0935GMT.

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