Germany will come to the.....>

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

the second time this week. On offer is that 1.25% Aug-48 Bund.

- BACKGROUND: Germany issued a new 05 Mar-22 Schatz on Tuesday, allotting

E4.064bln with a Buba cover of 1.5x and bid-to-cover of 1.2x. The 1.25% Aug-48

Bund was last auctioned on October 16 at an average yield of 0.30%, buba cover

of 1.29x and a bid-to-cover of 1.02x. 

- RV/HISTORY: The 1.25% Aug-48 Bund trades at a yield of 0.064%, down from a YTD

peak of 0.333% on January 13 and 29bp inside the comparable EUR swap. Bunds have

been reasonably bid so far this week as fresh concerns about the coronavirus

have underpinned a modest risk-off tone. Tuesday's weak ZEW data did little to

move the meter, reflecting not only the limited market sensitivity to the ZEW

survey but also the predominance of coronavirus in steering sentiment. There are

no significant data points ahead of the Wednesday auction. 

- TIMING: Results are due out at 1030GMT.