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

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

17, 2018 T-bill for Stg2.0bln, re-open 3-month Nov 19, 2018 T-bill for Stg2bln

and issue a new 6-month Feb 18, 2019 T-bill for Stg1.5bln Friday. 

- BACKGROUND: T-bill issuance remains at Stg5.5bln this week, although this is

till relatively high compared to the average for this year. The earlier risk-off

bid this week has faded, while UK data has been in-line or better than expected

which could weigh on UK T-bills, pushing yields higher.

- REDEMPTION: There is a T-bill redemption of Stg5bln on Monday, therefore

leaves net cash flow positive to the tune of Stg0.5bln which is seen weighing on

demand.

- HISTORY: For comparison, at the last UK T-bill auction on Aug 10, the DMO sold

Stg2bln 1-month T-bill at average yield 0.70% cover 1.69 times, Stg2bln 3-month

at average yield 0.7215% cover 2.29 times, and Stg1.5bln 6-month at average

yield 0.721% cover 2.72 times. 

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