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UK`s Debt Management......>

UK T-BILL AUCTION PREVIEW
UK T-BILL AUCTION PREVIEW: UK`s Debt Management Office (DMO) on Friday re-open
1-month Sep 24, 2018 T-bill for Stg2.0bln and 3-month Nov 26, 2018 T-bill for
Stg2.0bln, and issue a new 6-month Feb 25, 2019 T-bill for Stg1.5bln.
- BACKGROUND: UK T-Bill issuance remains steady this week at Stg5.5bln, same as
last week. 6-month rate expectations according to MNI PINCH have been relatively
steady since next week with less than 3% probability of a 25bps BoE rate hike
through to end-February 2019.
- REDEMPTION: There is a T-Bill redemption of Stg4.0bln scheduled for Tuesday
Aug 28, versus Friday's total sale of Stg5.5bln, therefore net cash flow could
weigh on demand.
- HISTORY: At the last sale on Aug 17, DMO sold a total of Stg5.5bln: Stg2.0bln
in 1-month T-Bill at avg yield 0.725% and 2.24x cover, Stg2.0bln in 3-month
T-bill at avg yield 0.726% and 2.2x cover, and Stg1.5bln in 6-month T-bill at
avg yield 0.722% and 2.58x cover.
- TIMING: Results are due to be announced at around 1005GMT.

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