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

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.