Germany will come to.........>

GERMAN AUCTION PREVIEW: Germany will come to market again on Wednesday to tap

the 0.0% Aug-29 Bund for E3bln.

- BACKGROUND: The 0.0% Aug-29 Bund serves as the 10-year benchmark and was last

sold on July 10 with E3.15bln allotted at an average yield of -0.26%, a

bid-to-cover ratio of 0.98x and Buba cover of 1.25x.   

- RV/HISTORY: Although the ECB did not materially alter its monetary stance at

the July meeting, it has teed up a move in September. Expectations of a fresh

round of quantitative easing, coupled with the deterioration in the economic and

inflation outlook for Germany has underpinned the broad-based rally and curve

flattening that has been underway since October. The 0.0% Aug-29 Bund trades at

a yield of -0.402%, 44.9bps inside the comparable EUR swap and marking a new

record yield low. This will be the second German auction of the week, with the

first being the 0.0% Jun-21 Schatz on Tuesday which was technically uncovered.

- TIMING: Results are due after the auction closes at 1030 London time.