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Belgium will tap the........>

BELGIUM AUCTION PREVIEW
BELGIUM AUCTION PREVIEW: Belgium will tap the market for E1.6-2.0bln today. On
offer are the 0.90% Jun-29 OLO and the 1.25% Apr-2033 OLO, with the former
serving as the 10-year benchmark. 
- BACKGROUND: The 0.90% Jun-29 OLO was last re-opened on June 17 with E1.0bln
sold at an average yield of 0.139% and bid-to-cover of 2.47x. The 1.25% Apr-2033
OLO was last tapped on March 18 with E0.96bln sold at an average yield of 0.870%
and bid-to-cover of 1.75x.
- RV/HISTORY: Belgian sovereign bonds sold off during the first half of July
following a broad two-month rally, with yields now once again inching lower. The
curve has similarly started to flatten again in anticipation of a new wave of
ECB easing, with the 2s10s spread narrowing to 65.7bp, down from 97.1bp in May.
Relative to the comparable EUR swaps, the 0.90% Jun-29 OLO trades 11.5bp inside
and the 1.25% Apr-2033 OLO trades 7bp rich. The auction calendar is relatively
light this week with just Belgium and Italy coming to market. 
- TIMING: Results are due out after the auction closes at 1030 London time.

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