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

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: Germany will tap the market for E5.0bln on Tuesday. On
offer is the 0.0% Dec-21 Schatz.
- BACKGROUND: This will be the new 2-year Schatz issue.
- RV/BACKGROUND: Having plunged deep into negative territory ahead of the
September ECB meeting, German yields continue to inch higher. The 2-year
benchmark yield trades at -0.614% from a September low of -0.928% and 27bp
inside the comparable EUR swap. The bund curve has bear steepened, spurred on by
doubts over a future upgrade to the current QE programme and tentative signs of
Washington and Beijing edging closer to a trade truce. A potential flashpoint
ahead of Tuesday's auction will be the German ZEW survey data for November,
which will be published at 1000GMT.
- TIMING: Results are due out around 1030 GMT. 

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