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

AUSTRIA AUCTION PREVIEW: Austria's Federal Financing Agency on Tuesday taps the

5-Yr benchmark 0.00% Jul-23 RAGB and 10-Yr benchmark 0.75% Feb-28 RAGB for a

combined E1.15bln.

- BACKGROUND: The Jul-23 last sold on Jun 5 at average yield of -0.08% and cover

of 3.1x, while the Feb-28 last sold on Sep 4 at 0.534% average yield and 3.3x

cover. The sale will bring Austria's 2018 issuance from 76% to 82% of the

planned annual total.

- RV: The Austrian sovereign curve has bear steepened over the past month, in

line with similar weakness in core and semi-core EGBs. The Jul-23 went back into

positive territory in late September for the first time in June, rising as far

as 0.057%, but is last at 0.012%, up 12.3bps in the past month. The yield on the

0.75% Feb-28 has risen 15.0bps to 0.6948%, though this is below the 3-month high

of 0.733% set in late September. With minimal redemptions/coupon payments due to

return to market this week, and EGB issuance of E14.7bln, cash flow is a net

negative for issuance this week.

- TIMING: Bidding closes at 0900GMT, with results due around 15min later.