Germany will tap the 0%......>

GERMAN AUCTION PREVIEW: Germany will tap the 0% Nov-27 bund for EUR3bn on

Tuesday.

- BACKGROUND: At the previous auction of the 0% Nov-27 on May 12, EUR3.26bn was

allotted at an average yield of -0.62%, Buba cover of 2.30x and bid-to-cover of

1.88x.

- RV/HISTORY: German bunds have started the week on a firmer footing,

potentially reflecting a natural pullback from last week's bear steepening

theme. Although uncertainty remains over the EC proposed EUR750bn recovery plan,

the ECB's decision last week to raise the PEPP by EUR600bn and extend its

duration into June 2021, followed by a far better than expected US jobs report

last Friday, are supportive for risk sentiment. The 0% Nov-27 currently trades

at a yield of -0.434% off a recent high of -0.415% and 29bp inside the

comparable EUR swap. German trade and current account data will be published

ahead of Tuesday's auction, but is unlikely to be market moving.

- TIMING: Results are due out around 1030BST.