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

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) taps the 30-Year
benchmark 1.5% July 2047 Gilt Thursday for Stg2.25bln. 
- BACKGROUND: There are no redemption/coupon payments this week. Brexit issues
are front end centre on the market's mind as events are moving rapidly.
- RV: 30 Year yield levels have declined to 1.80%, the lower since September as
the outlook for growth has dwindled while Brexit uncertainty hangs in the
balance. The outright yield level looks unhelpful but the 10-30Y spread is also
in the thin side too at a spread of 57bp, compared to a low for 2017 of 54.2bp. 
- HISTORY: At the last tap on Sept 19, the DMO sold Stg2.5bln total at an
average yield 1.871% (around 7bp above today's yield), the bid-to-cover ratio
was a lowish 1.97 times and tailed by 0.4bps. 
- RESULTS: Auction results are due around 1035GMT.

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