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AUSTRIA WILL COME TO MARKET ON TUESDAY FOR A TAP OF EUR1.15BN.

AUSTRIA AUCTION PREVIEW

Austria will come to market on Tuesday for a tap of EUR1.15bn. On offer are the 0% Jul-24 RAGB and the 0.0% Feb-30 RAGB.

- BACKGROUND: Previous auction results (date, volume, average yield, bid-to-cover): % Jul-24 RAGB (7 Apr 2020, E0.58bn,-0.33%, 4.65x), 0.0% Feb-30 RAGB (7 Jul 2020, E0.92bn, -0.26%, 2.39x).

- RV/HISTORY: The RAGB rally has pushed yields back down to March levels alongside incremental narrowing of spreads over bunds in recent months. The 0% Jul-24 RAGB and the 0.0% Feb-30 RAGB trade 20bp and 7bp inside the comparable EUR swap, respectively. Uncertainty over the economic outlook, coupled with the persistent bid from the ECB through the PEPP facility, will keep RAGBs well supported in the near term. There will be no significant data releases ahead of the Tuesday auction to serve as a potential catalyst for price action.

- TIMING: Results are due out after the auction closes at 1000BST.

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