Free Trial

Today will see the DMO tap.....>

GILT AUCTION PREVIEW
GILT AUCTION PREVIEW: Today will see the DMO tap the 0.875% Oct-29 conventional
gilt. Stg2750 nominal is on offer with an additional Stg412.5mln available
through the PAOF.
BACKGROUND: This is the second auction of the issue, which will eventually
become the 10-year benchmark and will bring the total amount outstanding to
between Stg5.9-6.3bln. The gilt was launched on 18 June with a yield of 0.889%,
a bid-to-cover of 2.10x and a tail of 0.7bps. The issue is due to be tapped
again on 5 September, and will likely be tapped twice between Oct-Dec and twice
between Jan-Mar. The 0.875% Oct-29 is trading at around a 4-8bp premium to the
4.75% Dec-30 gilt.
- TIMING: The results will be due shortly after the auction closes at 10:30BST
with the PAOF available to successful bidders until 14:00BST.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.