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

GILT AUCTION PREVIEW: The UK Debt Management Office will tap the 1.625% Oct-28

Gilt for Stg.2.75bln on Thursday.

- BACKGROUND: There is currently Stg. 13.5bln outstanding of the 1.625% Oct-28

Gilt, which is the 10-year benchmark.

- RV/HISTORY: Gilts have sold off across the board since the beginning of the

month and the curve has steepened, with the 2s10s spread edging up to 76.0bps

from 67.3bps. The 1.625% Oct-28 Gilt currently trades at 1.610% up from 1.403%

at the beginning of the month and towards the top-end of the YTD range. The

issue also trades 7.8bps inside the comparable GBP swap. The August CPI surprise

(2.7% Y/Y vs 2.4% survey) will fuel expectations of faster monetary policy

normalisation, although the impact on the curve will depend on the

Brexit-related newsflow during this week's EU summit in Salzberg.

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