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

GERMAN AUCTION PREVIEW: Germany will come to market on Tuesday for the first of

two auctions this week. On offer is E5bn of the 0% Jun-22 Schatz.

- BACKGROUND. At the last auction of the 0% Jun-22 Schatz on 23 June, E4.03bn

was allotted at an average yield of -0.69%, Buba cover of 2.40x and bid-to-cover

of 1.98x

- RV/HISTORY. The front end of the bund curve has been relatively well anchored

in recent months as the ECB's focus on PEPP and PELTRO has diluted any

speculation of further cuts to the deposit rate. The 0% Jun-22 Schatz currently

trades at a yield of -0.681%, near the middle of the range over the last three

months and 33bp inside the comparable EUR swap. While there are no significant

data releases ahead of the Tuesday auction, EU summit negotiations over the

regional recovery fund remain a potential catalyst for price action.

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