Germany will re-open the.....>

GERMAN AUCTION PREVIEW: Germany will re-open the 0.1% Apr-46 Bundi on Tuesday

for E0.5bln.

- BACKGROUND: The 0.1% Apr-46 Bundi was last sold on May 7 with E0.3bln allotted

at an average yield of -0.76%, Buba cover of 1.42x and real cover of 0.80x

- RV/HISTORY: Yields at the very long-end of the bund curve have reversed higher

since mid-August following a sharp rally from the beginning of July. This in

part reflects a natural pullback from a heavy buying spell, coupled with

emerging doubts about the size of a potential QE programme, expected to be

announced by the ECB this week. Breakevens have similarly recovered some ground

with the 30-year benchmark trading up to 1.26% from a record low of 1.08% on

July 3. The 0.1% Apr-46 Bundi yield currently trades at -1.271% up from an

August low of -1.538%. 

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