Tomorrow will see the DMO......>

GILT AUCTION PREVIEW: Tomorrow will see the DMO tap the 1.75% Jan-2049 gilt for

Stg2,000mln. This will be the fifth auction of the issue and will bring the

total amount outstanding to over Stg10.5bln. The issue is the current 30-year

benchmark and is roughly trading with a 1bp discount to the 4.25% Dec-2049 gilt

(albeit there is a notable difference in coupon).

PRICING/RV: It has been impossible to ignore the rally in 30-year bonds

globally, particularly over the past couple of weeks and the auction will see

yields comfortably below the 1.421% average seen at the last auction on June 25.

At the time of writing the issue was yielding 1.171%.

PREVIOUS AUCTIONS: The previous auctions have varied in size and hence the

bid-to-covers have ranged from 1.76-2.40x with tails ranging from 0.4-0.9bps.

RESULTS: The results are due shortly after the auction closes at 10:30BST with

the PAOF open to eligible bidders until 2pm BST.