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

GERMAN AUCTION PREVIEW: Germany will come to market on Tuesday to tap the 0.50%

Apr-30 iBund for E0.5bn.

- BACKGROUND: At the last auction of the 0.50% Apr-30 iBund on May 5, E0.38bn

was allotted at an average yield of -1.04%%, Buba cover of 0.71x and

bid-to-cover of 1.8x.

- RV/HISTORY: Core sovereign curves have beer steepened sharply at the beginning

of this week ahead of Thursday's ECB policy meeting and an expected fiscal

stimulus proposal from Germany. Elsewhere conflicting policy developments

suggest bunds could be heading for choppy trading. In particular, easing of

lockdown measures across the region is positive for risk sentiment, but

speculation that the so-called 'Frugal Four' will issue objections to the

recently proposed EC recovery fund could undermine fiscal coordination in the

euro area. Although the final May PMI prints released ahead of the Tuesday

auction may not be market moving, unemployment data for May has the potential to

be a significant catalyst for price action.

- TIMING: Results are due shortly after 1030BST.