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GERMAN AUCTION PREVIEW:......>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur
re-opens the 10-year benchmark 0.5% Aug-2027 Bund for up to E3bln on Wednesday. 
- BACKGROUND: Today's tap will bring the outstanding to E11bln. Markets are thin
but often this can help to concentrate demand at liquidity-providing auctions.
Draghi speaks two hours before the auction. Jackson Hole starts tomorrow.
- RV: This issue has cheapened against the Sep-17 Bund contract CTD, the 0.5%
Aug-26. The 23bp spread is the best since the Aug-27 was first issued in
mid-July. However, 10-year Germany has outperformed other debt in the semi core
and is looking quite expensive to the swap curve, with the swap spread having
moved from -35bp at first issue to -42bp today.
- HISTORY: Six auction averages for the 10-Year are a cover of 1.47x, a true
bid-cover of 1.18x, retaining 19%. There have not been any technically uncovered
10Y auctions in 2017.
- RESULTS: Auction results are due after bidding close at 0930GMT.

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