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UK Rates Strategists at BAML, Sebastien.......>

GILTS
GILTS: UK Rates Strategists at BAML, Sebastien Cross and Mark Capleton say that
UK buybacks will offset around a third of gross nominal supply in the copming
two months. They write, "August and September's BoE buybacks will go ahead as
expected, with GBP10.1bn to be reinvested into the Gilt market. We estimate
GBP16.9bn gross Gilt supply to come in August and September, GBP14.2bn in
nominals and GBP2.7bn in linkers".
- Operations will run for 3 weeks from August 28th. The GBP1.125mln size  of
these operations surprised BAML analysts who note that the previous sizes were
GBP775k when they finished in March.

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