Antoine Bouvet at Mizuho commented upon the....>

EGBS: Antoine Bouvet at Mizuho commented upon the fair value of the Austrian

securities on sale today.

- 5Y: "We see FV around +6bp yield spread (pick-up) to Nov22 which is equivalent

to MS-36.5bp so we see some room for a small tightening from the guidance of

MS-34bp."

- 100Y: "Extrapolating the shape of the Austria curve after the 2086 point

yields two estimates: FV for the new Sep2117 bond should be between +18.5 and

+22.5bp over Nov86 (equivalent to +47.5 and +51.5bp respectively over Feb47)."

Initial guidance is at RAGB Feb-47 + 60bp area. 

- Mizuho's estimates are equivalent to RAGB Feb-47 + 47/51bp and clearly tighter

than initial guidance. This does not surprise Bouvet who remarks  that "back in

October last year, the new Nov86 priced at a yield spread of +53bp to Feb47

against a FV estimate of roughly 44bp at the time and against current spread of

+29bp."