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

AUSTRIA AUCTION PREVIEW: Austria's Federal Financing Agency will tap the market

for E1.38bln on Tuesday. On offer are the 0.00% Jul-23 RAGB and the 0.50% Feb-29

RAGB.

- BACKGROUND: Austria has made considerable progress on issuance for 2019 having

met 42.7% of the full-year target. The 0.00% Jul-23 RAGB was last tapped on

April 9 with E0.58bln allotted at an average yield of -0.399% and bid-to-cover

ratio of 2.2x, while the 0.50% Feb-29 RAGB was re-opened on March 3 with

E0.70bln sold at an average yield of 1.26% and bid-to-cover ratio of 3.7x.

- RV/HISTORY: Having sold off slightly in the first half of April, Austrian

bonds subsequently rallied with yields inching closer to YTD lows. The curve has

broadly flattened since the beginning of the year with the 2ss10s spread

currently trading at 80.1bps down from a high of 99.9bp in January. The 0.00%

Jul-23 RAGB trades at a yield of -0.341% off a YTD low of -0.380% in March and

34.1bp inside the comparable EUR swap. The 0.50% Feb-29 RAGB trades at a yield

of 0.292% off a March low of 0.215% and 20.4bp inside the comparable EUR swap.

- TIMING: Results are due shortly after the auction closes at 1015BST.