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

UK T-BILL AUCTION PREVIEW
UK T-BILL AUCTION PREVIEW: UK's Debt Management Office (DMO) re-open 1-month Jul
30, 2018 T-bill for Stg1.5bln, re-open 3-month Oct 1, 2018 T-bill for Stg1.5bln
and issue a new 6-month Dec 31, 2018 T-bill for Stg1.0bln Friday. 
- BACKGROUND: T-bill issuance remains at Stg4bln for the fifth week in a row.
Short Sterling strip has edged higher since last weeks auction following dovish
comments from MBP member in waiting Jonathan Haskel, with chance of a rate hike
in August now at 63%.
- REDEMPTION: There is a T-bill redemption of Stg1.5bln on Monday, therefore
leaves net cash flow positive to the tune of Stg2.5bln which is seen weighing on
demand.
- HISTORY: For comparison, at the last UK T-bill auction on Jun 22, the DMO sold
Stg1bln 1-month T-bill at average yield 0.377% cover 2.09 times, Stg1.5bln
3-month at average yield 0.546% cover 1.59 times, and Stg1.5bln 6-month at
average yield 0.586% cover 3.13 times. 
- TIMING: Results are due to be announced at around 1005GMT.

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