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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 3-month Jun 7, 2018 Bill for up to E2.0bln on Tuesday. 
- RV: The grey market for the new 3-month May 10, 2018 Bill is indicating a
mid-yield of around -0.535%, which is in the region of a 2bp pick up versus the
May 10, 2018 Bill and -17.8bps vs Eonia. There will be a ESM Bill redemption of
E1.498bln this week, leaving net cash flow positive to the tune of E502mln which
is seen weighing on demand.
- HISTORY: For comparison at the last 3-month Bill issued on Feb 6, the ESM sold
E1.996bln at an average yield -0.6123% and cover of 4.9 times. Prior to that, on
Jan 9 auction, the ESM sold E2bln at an average yield of -0.6181% and
bid-to-cover of 5.2 times. 
- TIMING: The auction will close at 1130GMT, with results announced by Germany's
Bundesbank shortly afterwards.

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