Germany sells E0.5bln of.....>

GERMAN AUCTION PREVIEW: Germany sells E0.5bln of the 0.50% Apr-30 IL Bund and

E0.3bln of the 0.10% Apr-46 IL Bund on Tuesday.

- BACKGROUND: Germany is broadly on target for issuance in 2018 with 58% of

planned issuance already fulfilled. There has been reasonably strong demand for

linkers this year, with an average bid-to-cover ratio of 1.4.

- HISTORY: Real yields have traded lower in 2018 with the Apr-30 linker trading

at -0.989% from a YTD high of -0.498% on February 2 and hovering around levels

last seen in 2015. Similarly the Apr-46 linker yield has edged down to -0.677%

from a recent high of -0.288% and is trading near the lower end of the

historical range. Although there are no significant redemptions or coupon

payments this week, the tentative truce between Chancellor Angela Merkel and

Interior Minister Horst Seehofer will be a supportive factor for upcoming

auctions.

- TIMING: Results are due shortly after the auction closes at 0930GMT