Tomorrow will see issuance.....>

GILT AUCTION PREVIEW: Tomorrow will see issuance kick off for the week (and also

the quarter). Wednesday's first auction will be the first re-opening of the

0.125% Jan-28 gilt which was launched via auction three weeks ago. GBP3.00bln

will be on offer, a smaller size than the launch auction of GBP3.25bln.

- The launch auction was one of the softest gilt auctions so far this fiscal

year with a bid-to-cover of 2.06x and a tail of 0.7bp. There has only been one

auction with a smaller bid-to-cover this fiscal year: last week's 2.75% Sep-24

auction. That same auction also saw a wider tail of 0.8bp. Only the launch

auction for the 0.125% Jan-28 gilt, the 2.75% Sep-24 auction last week and an

auction of the 2.00% Sep-25 gilt in April have seen tails of 0.7bp or wider so

far this fiscal year. As 97% of the PAOF was taken up following the launch

auction there is currently GBP4.04bln of the gilt outstanding, making the gilt

eligible for the BOE's APF purchases. The BOE has purchased almost GBP1.0bln of

the gilt. The gilt is provisionally scheduled to be sold again on 22 July.

RESULTS: Shortly after the auction close at 10:00BST with a further GBP750mln

available to successful bidders through the PAOF.