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Austria's Federal...........>

AUSTRIA AUCTION PREVIEW
AUSTRIA AUCTION PREVIEW: Austria's Federal Financing Agency on Tuesday taps the
0.00% Sep-22 RAGB and 0.75% Feb-28 RAGB  for a combined E1.25bln.
- BACKGROUND: AFFA comes back to markets after skipping issuance in August (and
announced no further syndications this year) due to reducing the 2018 target
funding range to E25bln-28bln from E27-30bln. The Sep-22 last sold on Mar 6 at
average yield of -0.04% and cover of 2.5x, while the Feb-28 last sold on July 3
at 0.554% average yield and 2.1 times cover.
- HISTORY: The 0.75% Feb-28 is the benchmark 10-year RAGB, and its current
0.545% yield represents a 1bps decline from the last auction, having traded as
high as 0.637% in early August. Indeed, the 10-Yr is the only tenor on the
Austrian curve to see a decline in yields over that timespan, whereas the
short-end/belly have underperformed. In that regard, at -0.247%, the Sep-22
yield is well off its two-month low of -0.335%, but is down from -0.168% in
early August. With only E1.15bln in redemptions and coupons this week, and EGB
issuance of E13.5bln, cash flow is a net negative for issuance this week.
- TIMING: Bidding closes at 0900GMT, with results due around 15min later.

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