Yesterday the DMO held its quarterly..........>

GILTS: Yesterday the DMO held its quarterly investor and GEMMs meetings

discussing issuance for fiscal Q2.

- Shorts (3 auctions): Opinions divided between three auctions of the new 5-year

or two auctions of the new 5-year and a final auction of Apr-24.

- Medium (2 auctions): Unanimous in favour of two re-openings of the new

Oct-2029 gilt which is due to launch on 18-Jun.

- Long (2 auctions): Most favoured at least one reopening of the Jan-2049

benchmark (some GEMMS favoured two). The Sep-2037 was also frequently suggested.

Both GEMMs and investors also suggested a new 25-year with both suggesting a

2041 maturity and investors also suggesting a 2043 maturity. Some investors also

favoured longer maturities.

- Linkers (2 auctions): Varied calls with 2028 and 2048 most frequently cited

but no strong conviction.

- Linker syndication (July): Most favoured 2041 with some calls for 2056.

- Conventional syndication (Sep): Oct-54 and Oct-71 most favoured with some

calls for new 35y.