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

GERMAN AUCTION PREVIEW: Germany will tap the market for E4.0bln today. On offer

is the new 0.00% Oct-24 Bobl.

- BACKGROUND: Germany has so far met 55.5% of planned issuance for 2019,

slightly below the wider eurozone (56.8%). 

- RV/HISTORY: The rally in German bunds has shown few signs of abating, with

intensifying global headwinds and the regional industrial shock weighing on the

economic outlook and inflation expectations. Very long-end yields are trading

near recently set record lows, with the 30-year benchmark trading at 0.251%,

12bp inside the 30-year JGB. While not at the extreme levels seen in 2014-2015,

inflation breakevens have nonetheless fallen sharply: the 5-year breakeven has

adjusted down ~50bp since April to trade at 0.51%. The 5-year benchmark bund

currently trades at -0.667%, 2.4bp above the record low and 42bp inside the

comparable EUR swap. 

- TIMING: Results are due after 1030BST.