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/ BILL AUCTION PREVIEW: The European............>

ESM
ESM: / BILL AUCTION PREVIEW: The European Stability Mechanism (ESM) issue a new
3-month Jan 11, 2018 Bill for up to E1.5bln on Tuesday. 
- RV: The grey market for the new 3-month Jan 11, 2017 Bill is indicating a
mid-yield of around -0.57%, which is in the region of a 2.5bp premium versus the
Dec 7, 2017 Bill and is -21.3bps vs Eonia, according to Tradeweb. There will be
a ESM Bill redemption of E1.498bln this week, leaving net cash flow positive to
the tune of E2mln which is seen underpinning demand.
- HISTORY: For comparison at the last 3-month Bill issued on Sep 5, the ESM sold
E1.4976bln at an average yield -0.6225% and cover of 3.9 times. Prior to that,
on Aug 8 auction, the ESM sold E1.4986bln at an average yield of -0.6608% and
bid-to-cover of 4.4 times. 
- TIMING: The auction will close at 1030GMT, with results announced by Germany's
Bundesbank shortly afterwards.

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