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

GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) re-open 5-year 0.75%

July 2023 Gilt Thursday for Stg3bln in size.

- BACKGROUND: The Jul-23 Gilt is scheduled to be tapped again in 1-month's time

and currently has Stg23.05bln outstanding and could be the penultimate auction

of this bond. There are no coupon or redemption due to support today's auction.

- RV: On an outright basis the Jul-23 Gilt yield has cheapened by around 6bps

since it last auction on Apr 4, but has rallied by nearly 10bps since last week.

The 5-yr sector has remained broadly unchanged with e 2s/5s/10s curve little

changed over the past month. On a cross market basis 5-yr Gilt has outperformed

USTs hitting new highs and also German Bobls but too a lesser extent. The Jul-23

has cheapened versus asset swaps by circa 2/3bps and also against other Gilts

near by. Spread vs Sep-22 has widened by 2bp and has tightened by 1bp vs Sep-23

in last 3-weeks

- HISTORY: Back on Apr 4, the DMO allotted Stg2.75bln at average yield of 1.094%

with cover of 2.19 times and tail of 0.1bp.

- TIMING: Results are due to be announced around 0935GMT.