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

AUSTRIA AUCTION PREVIEW: Austria will tap the market for E1.035bln on Tuesday.

On offer are the 0.00% Jul-24 RAGB and the 0.50% Feb-29 RAGB.

- BACKGROUND: Previous auction results (date, sold, average yield,

bid-to-cover): 0.00% Jul-24 RAGB ( Sep 3, E0.5bln, -0.80%, 1.85x), 0.50% Feb-29

RAGB ( Sep 3, E0.5bln, -0.49%, 1.79x).   

- RV/HISTORY: With global recession fears receding and an apparent split within

the ECB governing council on the efficacy of large-scale asset purchases,

Austrian government bonds have sold off since the beginning of September. The

curve has bear steepened with the 2s15s spread trading up to 72bp from a

September low of 52bp. The 0.00% Jul-24 RAGB trades at a yield of -0.476% off an

August low of -0.776% and 22bp inside the comparable EUR swap. The 0.50% Feb-29

RAGB serves as the current 10-year benchmark and trades at a yield of -0.121%

and 15bp inside the comparable EUR swap.     

- TIMING: The auction results are due around 1015 GMT.