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Thoughts on the potential tender

GILT AUCTION PREVIEW
  • The DMO's tender news is not entirely unexpected as when the FQ3 ops calendar came out on 31 August they said they would consider 30+ year tenders for both conventionals and linkers.
  • We've not got the new 2043 maturity gilt on offer until the November syndication so we do have a bit of a gap in the issuance schedule and we've not got anything longer than 30-years outside of that syndication scheduled before the end of 2023.
  • There was some "limited support" to have an auction of the 1.125% Oct-73 gilt from the consultation so the MNI Markets team thinks that looks the most likely to be reopened.

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