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/ ESM BILL PREVIEW: The....>

EUROZONE T-BILL ISSUANCE
EUROZONE T-BILL ISSUANCE: / ESM BILL PREVIEW: The European Stability Mechanism
(ESM) issue a new 6-month Aug 23, 2018 Bill for E2.0bln on Tuesday.
- BACKGROUND: The ESM have raised the issuance of its T-bills from E1.5bln to
E2.0bln but so far it does not seam to have had an impact on markets.
- RV: The Grey market is indicating a mid-yield of around -0.5325% which is a
spread of -17.75 versus EONIA and currently a 2.75bp pick up versus the old
6-month Jul 19, 2018 Bill.
- HISTORY: For comparison at the last 6-month Bill issued on Jan 23, the ESM
sold E2bln at an average yield -0.6119% and cover of 5.2 times. Prior to this,
on Nov 21 auction, the ESM sold E1.4978bln at an average yield of -0.6958% and
bid-to-cover of 4.7 times. 
- TIMING: The auction will close at 1130GMT, with results announced by Germany's
Bundesbank shortly afterwards.

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