HALISTER1: Gilt 10Y Linker to Benefit From Breakeven Concession: Barclays

Gilt 10Y Linker to Benefit From Breakeven Concession: Barclays

(Bloomberg) -- The I/L 2026 gilt cheapened by ~7bps in breakeven yday, underperforming peers, this RV concession ought to be sufficient to ensure a reasonable result, writes Barclays analyst Henry Skeoch in a client note.
  • Forward breakeven between the IL 2019/IL 2026 is at 2.5%, which represents attractive value
  • Don’t expect significant ASW demand, despite discount offered, breakeven demand will be key determinant to auction success
  • Potential for some nervousness around supply, given very weak 2021 auction in Jan.
  • NOTE: U.K. to sell 0.125% I/L 03/2026 gilt for GBP1.3b
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Henry Skeoch (Barclays PLC)

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