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

GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) will re-open the

10-year 1.625% Oct 2028 Gilt on Wednesday for Stg2.75bn. 

- BACKGROUND: This is the second tap of the Oct 2028 Gilt, issued on 15 March.

There is currently Stg5.36bn outstanding. This is the last re-opening of the Oct

2028 issue this quarter.

- RV: The yield on the 2028 gilt has sold off around 10bps from the May low of

1.4995%, but is still trading on the tighter end of the 1.457-1.705% 2-month

range. Since the last auction on 19 April, the yield has compressed from 1.656%

to 1.599% and is trading just 0.9bps inside the 10-year swap. The 10-30Y spread

has widened significantly to 41.93bps on 9 May from 27.9bps on 21 March.

- HISTORY: At the last 10-year auction, the DMO sold Stg2.5bn at an average

yield of 1.597%, bid-to-cover of 2.39 times and 0.1bp tail.

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