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

GERMAN AUCTION PREVIEW: Germany will re-open the 0.0% Aug-29 bund on Wednesday

for E3.0bln.

- BACKGROUND: The 0.0% Aug-29 bund was last sold on August 28 with E2.34bln

allotted at an average yield of -0.70% and bid-to-cover of 1.90x. The issue

serves as the current 10-year benchmark. 

- RV/HISTORY: Longer-end yields have pushed higher since the beginning of

September - likely reflecting a natural pullback from the intense rally since

mid-July, and fuelled by the ECB's September easing package which received a

relatively lukewarm reception from markets. The 10-year benchmark currently

trades at a yield of -0.584% off the record low of -0.716% set on August 28 and

40bp inside the comparable EUR swap. This week's Schatz sale was reasonably well

covered (Buba cover 1.53x, real cover 1.23x), which may bode well for the

Wednesday auction.

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