The UK's Debt Management.......>

GILT AUCTION PREVIEW: The UK's Debt Management Office sells Stg2.5bln of the

1.625% Oct-28 Gilt Tuesday.

- BACKGROUND: This is a re-open of the Oct-28 with Stg8.17bn outstanding. 

- HISTORY: The Gilt curve has flattened over the last month on the back of the

long end outperforming. The front of the curve is under pressure from

above-target inflation, while the longer end is being weighed down by weaker

growth expectations. The benchmark 10-year gilt yield has edged down to 1.272%

from a June peak of 1.407%, with the 2s10s spread narrowing to 54.1bps from a

recent high of 65.3bps on June 7 and down from the 2018 peak of 94.6bps on

February 15. The Oct-28 Gilt has traded down from 1.697% on May 17 to 1.419% and

trades 11bps inside the comparable swap. 

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