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Lyn Graham-Taylor at Rabobank.....>

EUROZONE ISSUANCE
EUROZONE ISSUANCE: Lyn Graham-Taylor at Rabobank notes that there is a strong
bid for the front end of the EGB curves. 
- Rabo believes that this is a function of asset managers exercising one of
their options for the year-end, buying cash bonds (rather than via repo or
unsecured bank deposits).
- Graham-Taylor says that it's quite interesting to compare what happened to
Dutch T-bills in 2016 and 2017.
- "2016- DTB 0% 31/01/17. No noticeable move in yield until 12/12/16. Yield then
declined by 50bp heading into year end.
- 2017 - DTB 0% 31/01/18. Decline in yield started on 24/11/17 and has currently
moved by 35bp."
- He adds that asset managers are clearly preparing earlier for the year-end
than in 2016, but Rabobank are reluctant to say that year-end will be worse this
time around.

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