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 E1.265bln.

- 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 E25-E28bln from E27-E30bln. 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.

- RV: 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.