UK's Debt Management......>

UK T-BILL AUCTION PREVIEW: UK's Debt Management Office (DMO) re-open 1-month Jun

18, 2018 T-bill for Stg0.5bln, re-open 3-month Aug 20, 2018 T-bill for Stg1.0bln

and issue a new 6-month Nov 19, 2018 T-bill for Stg1.5bln Friday. 

- BACKGROUND: T-bill issuance rises to Stg3.0bln this week, having been at

Stg2.5bln since that start of 2018/19 fiscal year. With markets pricing in

slightly higher chance of a rate hike in Q4 risk is that yields will likely rise

compared to last week. However, a flight-to-quality bid this week due to Italian

concerns might offset some of the move.

- REDEMPTION: There is a T-bill redemption of Stg3bln on Monday, therefore

leaves net cash flow flat which is seen underpinning demand.

- HISTORY: For comparison, at the last UK T-bill auction on Mar 16, the DMO sold

Stg0.5bln 1-month T-bill at average yield 0.352% cover 4.08 times, Stg0.5bln

3-month at average yield 0.373% cover 3.78 times, and Stg1.5bln 6-month at

average yield 0.529% cover 3.82 times. 

- TIMING: Results are due to be announced at around 1005GMT