OUTLOOK: Price Signal Summary - Bull Theme In Gilts Remains Intact

• GBP400.0mln had been available.
• This leaves GBP12.776bln of the linker in issue.

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A growing number of EU leaders are voicing their support for mooted EU plans that could see EUR140bln of frozen Russian assets held in the Union utilised as a zero-interest "reparations loan" for Kyiv. The loan would then only have to be repaid once Russia has, in turn, repaid Ukraine for war damage. European Commission President Ursula von der Leyen said in late September that “We will strengthen our own defence industry by ensuring that part of the loan is used for procurement in Europe and with Europe.”

• In a notable boost for the prospect of the reparations loan, German Chancellor Friedrich Merz backed the idea in an FT op-ed. At today's informal meeting of EU leaders in Copenhagen, a number of EU leaders have backed the idea. Latvian PM Evika Silina said, “We have long called for using frozen Russian assets to aid Ukraine.” Finnish PM Petteri Orpo called the plan "a very good idea", while Estonian PM Kristen Michal said the frozen assets should be utilised "as much as possible". Dutch PM Dick Schoof says the proposal "should seriously be considered, as long as risks are covered". 

Both appear to be buys & crossed at same time: 0720:00ET

• +4,800 FVZ5 109-08.25, buy through 109-08 post time offer, DV01 $210,600
• +3,000 TYZ5 112-19, buy through 112-18.5 post time offer, DV01 $203,100