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

GILT AUCTION PREVIEW: The UK Debt Management Office goes to market on Tuesday

for Stg2.25bln, re-opening the 10-year benchmark 1.625% Oct-28 Gilt. 

- HISTORY: At the last auction of 1.625% Oct-28 Gilt on Sep 20, the DMO allotted

Stg2.337bln at an average yield of 1.596% with a cover of 1.92x.    

- BACKGROUND/RV: The 10-year benchmark reached a YTD yield high of 1.72% at the

start of October with increasing optimism about the possibility of a deal on

Brexit. By mid-October it had dropped below 1.40% as the equity market downturn

saw Gilts rally. Yields have climbed back up to 1.51% with the recovery of

equity markets and slightly hawkish minutes from the UK MPC last Thursday the

recent drivers.

- TIMING: Results will be due shortly after the end of the auction at 1030GMT.