Germany sells E3bln in.......>

GERMAN AUCTION PREVIEW: Germany sells E3bln in 10-Yr benchmark 0.25% Feb-29 Bund

on Wednesday.

- BACKGROUND: The Feb-29 Bund was last auctioned on March 27, at an average

yield of -0.05%, Buba cover of 2.6x, and real bid-to-cover of 1.2x.

- RV/HISTORY: The German curve has bear steepened over the past month, despite

an overall bull flattening move in the curve over the past year. The 10-Yr yield

is 5.6bps higher than at last month's auction, with 5s10s widening by 3.8bps.

Nonetheless, there is little obvious relative value overall. Swap spreads are on

net roughly unchanged over the past month, with the Bund trading 50bps inside

the equivalent EUR swap, around the lowest levels since mid-2018. Versus other

core/semi-core, Bunds are marginally less expensive now than a month ago -

Netherlands 10-Yr spread is 1.8bps narrower at 13bps. Versus 0.25% Aug-28 Bunds,

Feb-29 is about 0.4bps cheaper than a month ago.

- Large cash flows of E35.3bln coming back to EGB markets this week in the form

of coupons and redemptions are seen supporting demand.

- TIMING: Results are due shortly after the auction closes at 1030BST.