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

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) taps Stg800mln of the
I/L Gilt 0.125% Gilt 2036 on Wednesday.
- BACKGROUND: The DMO currently does one linker tap per month and the Stg800mln
being sold is a slightly smaller size than normal. 
- RV: Barclays believes that "the auction should be fairly well received by the
market" and goes on to mention that "the IL36 offers most value on the ASW
curve" pointing out how the 10s20s asset swap spread curve has steepened in the
second half of this year. As always, in a market that has limited liquidity,
this will be seen as a liquidity event in a decreasingly illiquid time of the
year. This instrument usually heads straight into pension funds that locks up
securities such as these.
- HISTORY: The last 2036 index-linked auction that the DMO conducted was on 27
Sep, 2017 and it was Stg0.95bln with a bid to cover ratio of 2.99.
- RESULTS: Auction results are due at around 1035GMT

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