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

GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) taps Stg1.0bln of the

I/L Gilt 0.125% Gilt 2026 on Tuesday. 

- BACKGROUND: The DMO currently does one linker tap per month and the Stg1.0bln

being sold is a fairly normal size. The UK IL17 linker will redeem on Wednesday.

- RV: Barclays point out that this week's redemption extends all-linker indices

with "daily rebalances by about +0.6y at close of business Tuesday." - Barclays

add that the auction of the Gilt index-linked on this week adds duration but it

is not clear if this "supplies a long enough bond to help much with potential

real duration demand" surrounding this index event. In other words, demand

should be good. 

- HISTORY: At the last tap of this 2036 I/L Gilt issue on Jun 27, the DMO

allotted Stg0.85bln at an average yield of -1.969%, with a bid-to-cover ratio of

3.1 times. 

- RESULTS: Auction results are due at around 1035GMT