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

GILT AUCTION PREVIEW: The UK Debt Management Office will tap the market for
Stg3bln on Thursday. On offer is the 1% Apr-24 Gilt.
- BACKGROUND: This is the 5-year benchmark and was last tapped on April 2.
Stg3.0bln was originally allotted at an average yield of 0.748% and a
bid-to-cover ratio of 2.44. A further Stg0.45bn was then allotted through the
PAOF (the maximum available). This is likely to be the penultimate auction for
the 1% Apr-24 gilt. It will be tapped again on June 4 before a new 5-year bond
maturing in 2025 is likely to be launched in Q3.
- RV/HISTORY: Over the past month the yield on the 1% Apr-24 gilt has traded in
a 10bp range between 0.864%-0.964% with yields currently closer to the bottom of
that range. 2s5s have traded fairly steadily over the past couple of weeks while
the 2s10s curve has flattened somewhat. Yields on the 1% Apr-24 have been around
30bp below 5y swaps for the past month, trading is a 26-33bp range YTD.
- TIMING: Results are due shortly after the auction closes at 10:30BST with the
PAOF available to successful bidders until 14:00BST.

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