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Germany will tap the.........>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: Germany will tap the market today for E5bln. On offer is
the 0.00% Jun-21 Schatz.
- BACKGROUND: The 0.00% Jun-21 Schatz was last re-opened on May 28, with
E3.91bln allotted at an average yield of -0.65%, bid-to-cover ratio of 0.78x and
Buba cover of 1.60x. The Finanzagentur is broadly on target with issuance this
year, with 52% of the YTD target currently met, compared to 55% for the
eurozone.
- RV/HISTORY: Risk-off sentiment on the back of global growth concerns and
rising geopolitical risks, coupled with the recent dovish shift at the ECB, has
underpinned the rally in bunds. The curve continues to flatten in line with the
drawdown in market-based measures of inflation expectations, with the 2s30s
spread narrowing to 99.9bp from a May high of 125.8bps. The 0.00% Jun-21 Schatz
trades a yield of -0.742% off a recent low of -0.763% on June 18 and  39.6bp
inside the comparable EUR swap.
- TIMING: Results are due shortly after 1030BST.  

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