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

GILT AUCTION PREVIEW: The UK's Debt Management Office will tap the market for

Stg.3.0bln on Wednesday. On offer is the 1.0% Gilt Apr-24.

- BACKGROUND: At the last auction of the 1.0% Gilt Apr-24 the DMO sold

Stg.2.12bln at an average yield of 1.02% with bid-to-cover ratio of 2.2x. 

- RV/HISTORY: Gilts have rallied since the beginning of February, extending a

broader trend going back to October. The longer-end has outperformed, causing

the curve to broadly flatten, although the curve has steepened slightly since

the end of February. The 1.0% Gilt Apr-24 yield trades at 0.981% up from a

February low of 0.796% and 31.5bp inside the comparable GBP swap. With

parliament due to vote on PM Theresa May's Brexit deal next week, gilts remain

susceptible to shifts in risk sentiment as political headlines intensify. 

- TIMING: Results are due shortly after the auction closes at 1030GMT