Germany will reopen the 0%...>

GERMAN AUCTION PREVIEW: Germany will reopen the 0% Jun-22 Schatz on Tuesday for

E5bn.

- BACKGROUND: At the last auction of the 0% Jun-22 Schatz on May 26, E4.07bn was

allotted at an average yield of -0.66%, Buba cover of 3.26x and bid-to-cover of

2.65x.

- RV/HISTORY: Bunds started the week on a strong footing, building on the

broader rally in place since early June. The curve has bull flattened over this

period, while inflation expectations have inched lower with the 5-year breakeven

rate currently hovering around 0.32% from a June high of 0.40%. The 0% Jun-22

Schatz currently trades at a yield of -0.701% from a June high of -0.607% and

35bp inside the comparable EUR swap. The German and French preliminary PMI data

for June will be closely watched ahead of the Tuesday auction, particularly

given the bounce in May and recent signs of a strong rebound in retail sales for

the UK and US. 

- TIMING: Results are due out at 1030BST