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

GERMAN AUCTION PREVIEW: Germany will re-open the 0.50% Apr-30 Bundi on Tuesday

for E0.5bln

- BACKGROUND: The 0.50% Apr-30 Bundi, which serves as the benchmark 10-year

linker,  was last tapped on November 5 with E0.38bln allotted at an average

yield of -1.28%, bid-to-cover 1.8x and Buba cover  2.3x

- RV/HISTORY: The bund curve has bull flattened since the beginning of the year,

underpinned by the ongoing escalation in tensions between US and Iran, which has

yet to show any signs of normalising. While preliminary data show a marginal

uptick in German inflation for December, PMI surveys suggest that the

manufacturing sector is stuck in recession. The 0.50% Apr-30 Bundi trades at a

yield of -1.310%, off a recent 6-month high of -1.188% on December 30. Eurozone

preliminary CPI data for December will be published on Tuesday ahead of the

Bundi auction.

- TIMING: Auction results are due shortly after 1030GMT