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Germany on Wednesday.........>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: Germany on Wednesday re-opens the benchmark 10-Yr 0.25%
Aug-28 Bund for E2.0bln.
- HISTORY: At the last re-opening of the Aug-28 Bund on November 7, the Deutsche
Finanzagentur allotted E2.397bln (E0.603bln retained) at an average yield of
0.42%, real bid-to-cover ratio of 1.13x, and a Buba cover of 1.4x.
- BACKGROUND/RV: The German curve has bull flattened since the last sale of the
10-Yr benchmark three weeks ago, with the 9-10 year segment outperforming (down
9-10bps). Indeed, 10-Yr yields briefly touched lowest levels since early
September on November 26 (0.330%), as global trade fears, falling oil prices and
weakening equity prices all boosted risk aversion.
- TIMING: Results are due after the auction closes, around 1035GMT.

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