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

GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) will re-open 20-year

1.75% Sep 2037 Gilt on Tuesday for Stg2.25bn in size.

- BACKGROUND: This is will be the fifth tap of the Sep 2037 Gilt since it was

launched back in November 2016. There is currently Stg12.085bn outstanding and

was lasted tapped back in January of this year for Stg2.25bln.

- RV: The yield on the 1.75% Sep 2037 Gilt is currently at 1.765% according to

Tradeweb having traded between a low of 1.68% and high of 2.08% so far this

year. The yield spread vs the 4.25% Jul 2036 Gilt has steadily risen to 6.35bps

from a low of 3.9bps seen in March but has tightened vs the 4.75% Jul 2038 Gilt

to -2.9bps from -3.7bps. Last night was trading 9.7bps outside the comparable

swap. The 5s20s spread has narrowed since the beginning of the year, trading

down to 73bps from 102bps, but up from low of 53.5bps seen on Mar 22. 

- TIMING: Results are due shortly after the auction closes at 0930BST