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0% Jul-31 DSL

DUTCH AUCTION PREVIEW
  • The DSTA will come to the market this morning to reopen the 10-year benchmark 0% Jul-31 DSL.
  • This will be the first reopening of the DSL following its launch via DDA in February.
  • The DDA saw bids of E26.41bln with E5.99bln sold at a yield of -0.316%.
  • The 0% Jul-31 DSL has been trading at a 13.5-15.5bp spread to the 0% Feb-31 Bund since late March and at the time of writing was trading close to the middle of that range.
  • We would expect today's auction to be successful.
  • We note that the DSTA has already announced that the 0% Jul-31 DSL will be reopened again on 8 June via auction.
  • Timing: Results will be available shortly after the auction closes at 9:00BST.

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