/DUTCH AUCTION PREVIEW. The.......>

EUROZONE ISSUANCE: /DUTCH AUCTION PREVIEW. The DSTA will issue E5-7bln of 0%

Jan-24 on Wednesday.

- BACKGROUND. The DTSA has already announced a 10.5bp to 13.5bp indicative

spread to the reference bond, the Bund 1.75% Feb-24. Note that there is a 5Y Obl

redemption on the 13th but nothing in the way of cash flows from the

Netherlands. There is (finally) a Dutch government that has noted their

intention to sell their stake in ABN Amro, worth around E13bln.

- RV. Looking at the German to Dutch curve around this point, an interpolation

of the asset swap spread curves would point to 10bp pick up. Thus, the offered

range looks to be generous and designed to create interest. The Dutch curve

slope has largely traded sideways in recent months in the 5-10Y area.

- TIMING. Direct Dutch auction begins Wednesday at 0800GMT. Allocation no later

than Thursday, the 12th at 0700GMT and priced 30 minutes after allocation.

Often, these auctions go through within an hour although Wednesday's DDA is

quite large.