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

GERMAN AUCTION PREVIEW: Germany will tap the market for E4bln today. On offer is
the 0.0% Oct-24 Bobl.
- BACKGROUND: The 0.0% Oct-24 Bobl was last sold on July 3 with E3.14bln
allotted at an average yield of -0.660% and bid-to-cover of 1.19x.
- RV/HISTORY: The latest escalation in the US-China trade spat (US President
Donald Trump threatening to raise tariffs on USD300bln by 10% and the Treasury's
decision to label Beijing a currency manipulator) has propelled bunds higher.
The 30-year benchmark yield is now firmly negative, with the whole curve now
under water. The 0.0% Oct-24 Bobl serves as the 5-year benchmark and currently
trades at a yield of -0.773% down from a July peak of -0.569% and trading 38.9bp
inside the comparable EUR swap. The shorter end of the curve continues to
flatten with 2s5s trading down to 3.9bp from a July high of 14.5bp. 
- TIMING: Results are due out after 1030 London time. 

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