Germany will auction the.....>

GERMAN AUCTION PREVIEW: Germany will auction the 0% Feb-30 bund for E4bn on

Wednesday.

- BACKGROUND: At the last auction of the 0% Feb-30 on 29 April, E3.4bn was

allotted at an average yield of -0.48%, Buba cover of 2.50x and bid-to-cover of

2.1x.

- RV/HISTORY: While the recent German constitutional court ruling has created

some uncertainty around the ECB's bond purchase programme, the joint

Merkel-Macron press conference on Monday afternoon to unveil a proposed E500bn

recovery fund has been a positive surprise form markets. Bunds traded weaker on

Tuesday and periphery-core spreads have narrowed. The 0% Feb-30 bund trades at a

yield of -0.466% at the time of writing, in the middle of the YTD range and 40bp

of the record low in March. There will be no German-specific data releases, or

significant euro area publications, that could serve as a catalyse for price

action heading into Wednesday's auction.

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