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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. The next Gilt supply arrives on Nov 16 with a 10Y tap.
- RV: Outright, Gilt yields are generous compared to the past year, thanks to a
BoE rate hike, but the past week has seen a decent rally in the Gilt market. The
5Y Ger-UK spread is 107bp and is close to the highest since June 2016. Switches
from shorter maturity debt, like the 5Y benchmark 0.5% Jul-22 do not look
particularly attractive at present. 
- HISTORY: At the last tap on Aug 23, the DMO sold Stg2.75bln total at an
average yield 0.906%, bid-to-cover ratio 2.36 times and a 0.2bp tail. 
- RESULTS: Auction results are due around 1035BST.

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