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

GILT AUCTION PREVIEW: The UK Debt Management Office (DMO) taps its new 5-year

1.00% Apr 2024 Gilt for the first time on Thursday for Stg3bln in size.

- BACKGROUND: The Apr-24 Gilt is scheduled to be tapped again in 1-month's time

and then again at the beginning of December and currently has Stg2.75bln

outstanding. There are no coupon or redemption due to support the auction this

week.

- RV: On an outright basis the Apr-24 Gilt yield is currently trading at 1.152%

up around 6bps since it was launched on Jul 24, but remains below last week's

high of 1.186%. Spread vs Jul-23 Gilt has widened by 0.6bp and has tightened by

0.5bp vs Sep-24 during the same period. On a cross market basis the 5-yr Gilt

has underperformed USTs and also the German Bobl but too a lesser extent. On an

asset swap basis The Apr-24 Gilt currently trades at -24.8bps

- HISTORY: Back on Jul 24, the DMO allotted Stg2.75bln at the launch of the new

5-yr Gilt at average yield of 1.094%, cover of 2.13 times and tail of 0.1bp.

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