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

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

28, 2018 T-bill for Stg1bln, re-open 3-month Oct 29, 2018 T-bill for Stg2bln and

issue a new 6-month Jan 28, 2018 T-bill for Stg2.0bln Friday. 

- BACKGROUND: T-bill issuance drops to Stg5bln from Stg6bln this week, although

this is till relatively high compared to the average for this year. Markets have

become more confident that the BoE will raise rates next week but with

uncertainty around Brexit could keep demand for Uk T0bills elevated.

- REDEMPTION: There is a T-bill redemption of Stg4bln on Monday, therefore

leaves net cash flow positive to the tune of Stg1bln 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 2.50 times, Stg2bln 3-month

at average yield 0.651% cover 3.44 times, and Stg2.0bln 6-month at average yield

0.686% cover 2.12 times. 

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