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Very weak gilt auction

GILT AUCTION RESULTS
  • Weak gilt auction with a wide 2.2bp tail and a LAP at a lower price than the prevailing market had traded for 50 minutes.
  • The price of the 3.75% Oct-53 Gilt has fallen from about 87.782 to around 87.58 at the time of writing.
  • Gilt futures also touch their lowest level in 75minutes - although have retraced most of their losses now.
  • For reference, we haven't had a tail that wide on a long-dated gilt auction since October 2022 in the midst of Truss' premiership (although we have on two short-dated gilt auctions in that period: 0.50% Jan-29 in Feb23 and 3.50% Oct-25 in Mar23).

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