We therefore do not expect any materials......>

GILTS: We therefore do not expect any materials changes to CGNCR forecasts and

hence do not expect the DMO to issue an update to its gilt issuance plans. Any

changes will more likely be reflected through changes to the T-bill or NS&I

target.

SYNDICATION UPDATE: The DMO has announced that it plans to launch a linker

syndication in the week commencing 18 November.

On offer will be either:

- A new index-linked gilt maturing on 10 August 2035 - we would expect nominal

Stg4.0bln issued in this case or

- 0.125% Aug-2041 index-linked gilt - of which we would expect Stg2.75bln to be

issued.

We had pencilled this into our calculations previously and this will be the 4th

out of 5 syndications this fiscal year. (2/2)