Germany returns to the.......>

GERMAN AUCTION PREVIEW: Germany returns to the market for a second time this

week to tap the 0% Apr-25 Bobl for E4bn on Wednesday having sold the 0.50%

Apr-30 iBund and the 0.10% Apr-46 iBund on Tuesday.

- BACKGROUND: At the last auction of the 0% Apr-25 Bobl on April 1, E2.72bn was

allotted at an average yield of -0.66%, Buba cover of 1.1x and bid-to-cover of

0.7x.

- RV/HISTORY: It has been a rocky start to the week for Bunds on the back of the

flare up in US-China tensions over the handling of the coronavirus crisis, as

well as the German constitutional court ruling on Tuesday that called into

question the validity of ECB QE. Political headlines will be the main flashpoint

heading into the Wednesday auction given the lack of timely data releases

(German factory orders data is for March, while the PMI data are final prints

for April). The 0% Apr-25 Bobl currently trades at a yield of -0.764%, near the

middle of the YTD range and 45bp inside the comparable EUR swap.

- TIMING: Results are due out at around 1030BST.