On Jan 8 the Deutsche........>

GERMAN AUCTION PREVIEW: On Jan 8 the Deutsche Finanzagentur will tap the market

for E0.5bln. On offer is the 0.50% Apr-30 Index-Linked Bund.

- HISTORY: For comparison at the last auction of the 0.50% Apr-30 I/L Bund on

Sep 4: 

E0.5bln was allotted, average yield -0.97%, cover 1.26x. 

- RV/BACKGROUND: Monday saw the lowest Manufacturing Orders data from Germany in

2 years, and signs of the global slow down in Europe grow stronger. 

The 10-Yr and longer dated maturities been well bid early this week as a result

and can be expected to continue to do so as we lead into the  UK 'meaningful

vote' on Brexit, where an outcome increasing the likelihood of No Deal is seen

as a hazard for the Germany economy. 

Monday saw the 10-Yr outperform the rest of the bund curve, 10-Yr yield down

1.1bps at 0.197%. The 2s10s steepened by 1bps, helped by underperformance at the

short end where the 2-Yr yield fell just 0.1bps to -0.596%.  

- TIMING: Results are due shortly after the auction closes at 1030GMT.