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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 Sep 20, 2018 Bill for E2.0bln on Tuesday.
- BACKGROUND: The ESM have raised the issuance of its Bills from E1.5bln to
E2.0bln but so far it does not seam to have had an impact on markets.
- RV: According to Tradeweb the grey market is indicating a mid-yield of around
-0.54% which is a spread of -18.2 versus EONIA and currently a pick up of 0.5bp
versus the old 6-month Aug 23, 2018 Bill.
- HISTORY: For comparison at the last 6-month Bill issued on Feb 20, the ESM
sold E1.996bln at an average yield -0.6052% and cover of 3.5 times. Prior to
this, on Jan 23 auction, the ESM sold E2bln at an average yield of -0.6119% 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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