Ireland re-opens the...>

IRELAND BOND AUCTION PREVIEW: Ireland re-opens the 0.9% May-28 IGB for E1.0bln

- BACKGROUND: This will be the sixth tap of the 0.9% May-28, which is the

10-year benchmark with E6.86bn currently outstanding. Ireland is well ahead on

issuance for this year with 78% of the 2018 target already met.   

- RV/HISTORY: IGBs have broadly rallied since the beginning of the year and the

curve has flattened. The 2s10s spread has narrowed to 133.0bps from a YTD high

of 156.0bps. The 0.9% May-28 currently trades at 0.885%, in the middle of the

2018 range and 0.6bps inside the comparable EUR swap. For comparative purposes,

at the last auction of this issue E0.95bln was allotted at an average yield of

0.82% and bid-to-cover ratio of 1.75.

- REDEMPTIONS: There are E15.2bln in EGB redemptions this week which may provide

some support to the auction. 

- TIMING: Results are due shortly after the auction closes at 0900GMT