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Wide tail on 10-year auction

GILT AUCTION RESULTS
  • Very healthy bid-to-cover of 3.09x - but more important is that 1.0bp tail with the LAP at 103.905 - lower than at any time in the last 28 minutes of the auction window.
  • The price of the 4.625% Jan-34 gilt fell from 104.000 to a post-auction low of 103.874.
  • Gilt futures fell 10 ticks on the results - around half of that retraced now.

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