- BACKGROUND: Germany has....>

GERMAN AUCTION PREVIEW: - BACKGROUND: Germany has met 85% of planned issuance

for 2018, level with the 85% average of the eurozone. There is currently E25bln

outstanding of the 2.50% Jul-44 Bund.

- RV/HISTORY: Recent Bund trend of rising yields since August amid global

monetary tightening has reversed since October 5 as risk off sentiment returned

with the uncertainty of Brexit and the Italian budget cooling European markets.

At the last auction of the 2.50% Jul-44 Bund, E1.5bln was sold at an average

yield of 1.06%, with a Buba cover ratio of 1.2x and real bid-to-cover ratio of

0.822x. The issue currently trades at a yield of 1.046%, down from the 5 month

high on October 5 of 1.112%. 

- REDEMPTIONS: There are E28.4bln in EGB redemptions this week which will

support the auction

- TIMING: Results are due shortly after the auction closes at 0935GMT