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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 Aug
20, 2018 T-bill for Stg2bln, re-open 3-month Oct 22, 2018 T-bill for Stg2bln and
issue a new 6-month Jan 21, 2018 T-bill for Stg2.0bln Friday. 
- BACKGROUND: T-bill issuance remains at Stg6bln continues to signal a possible
deterioration in UK finances. The overall soft side of UK wage data and
inflation has not knocked markets pricing of the next BoE rate hike coming in
August, currently seen at 78% according to MNI PINCH. Increase in domestic
political uncertainty is actually seen as increasing the chance of  the rate
hike coming sooner rather than later.
- REDEMPTION: There is a T-bill redemption of Stg3.5bln Monday, leaving 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 Jul 13, the DMO sold
Stg2bln 1-month T-bill at average yield 0.583% cover 2.03 times, Stg2bln 3-month
at average yield 0.648% cover 1.955 times, and Stg2.0bln 6-month at average
yield 0.68% cover 2.88 times. 
- TIMING: Results are due to be announced at around 1005GMT.

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