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GERMAN AUCTION PREVIEW:......>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur
re-opens its 30-Year linker Bundei 0.1% Apr 2046 issue on Tuesday for up to
E0.5bln in size. 
- BACKGROUND: This tap will bring the outstanding up to a still fairly modest
E6.5bln. ILBs were largely out of favour in Q2 as oil prices fell. Eurozone
inflation suffers from the strength of the euro but there are the first signs
that the strong economic growth is beginning to filter into core CPI. 
- History/RV: The 30Y German breakeven yield has flat-lined since the summer at
around 1.50%. A good way to look at this auction is by spreading versus the DBRi
0.1% 2026. Like the nominal curve, the real yield curve has steepened
aggressively and at 68.5bp, the real yield is its steepest ever.  
- Timing: Auction results are due shortly after bidding closes at
0930GMT/1030BST

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