Austria will tap the........>

AUSTRIA AUCTION PREVIEW: Austria will tap the market for E1.15bln on Tuesday. On

offer are the 0.0% Jul-24 RAGB and the 0.50% Feb-29 RAGB.

- BACKGROUND: The 0.0% Jul-24 RAGB was issues by syndication on June 26 with

E3.25bln sold at an average yield of -0.44% and bid-to-cover of 7.02. The 0.50%

Feb-29 RAGB was last re-opened on January 29 with E5.0bln sold at an average

yield of 0.50% and bid-to-cover of 3.7x. 

- RV/HISTORY: Austrian bond yields have fallen sharply since the beginning of

the year and the curve has flattened, with the 2s10s spread narrowing to 37.0bps

and returning to 2015 levels. Such has been the demand for Austrian debt that

the 100-year bond has now doubled in price over the last two years. The 0.0%

Jul-24 RAGB currently trades at a yield of -0.745% and 23bp inside the

comparable EUR swap, while the 0.50% Feb-29 RAGB (which serves as the 10-year

benchmark) trades at -0.442% and 15bp inside the comparable EUR swap.

- TIMING: Results are due out after the auction closes at 1015GMT.