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

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: The UK Debt Management Office will re-open the 0.125%
Aug-28 inflation-linked Gilt on Tuesday for Stg1.1bln. 
BACKGROUND: This is the 2nd reopening after previous auctions on Jun 20 (-1.709%
Average Yield, 2.23x Cover) and Aug 21 (-1.790% Average Yield, 2.29x Cover).
There is currently Stg2.5bln outstanding. 
RV/HISTORY: The 0.125% Aug-28 linker currently trades at a real yield of -1.73%,
with an implied breakeven of 3.1%. Since mid September the real yield has
dropped by 14bps, of which 9bps can be accounted to a reduction in the 10 year
horizon inflation expectation. The sell off in nominal Gilts has stopped since
the 10-year yield high a 33 month high on Oct 10, as global risk aversion saw
yields fall. 
TIMING: Results are due shortly after the auction closes at 0930GMT.

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