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

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: The UK Debt Management Office will tap the 1.0% Apr-24
Gilt for Stg. 3.0bln on Thursday.
- BACKGROUND: There is Stg5.75bln outstanding of this issue.
- RV/HISTORY: Gilts have sold off over the last month with underperformance at
the longer end causing the curve to steepen. The 2-year gilt benchmark currently
trades at a yield of 0.814% up from 0.723% on September 3 and the 10-year trades
at 1.554% up from 1.403%. The 2s10s spread has widened to 73.8bps from 67.3bps
over the same period. The 1.0% Apr-24 Gilt was last tapped on September 6 with
Stg3.0bln sold at an average yield of 1.106%, bid-to-cover ratio of 1.92x and
0.4bps tail. The issue currently trades at a yield of 1.220%, up from a low of
1.029% on July 19 and 23.9bps inside the comparable GBP swap.
- TIMING: Results are due shortly after the auction closes at 0930GMT.

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