On Tuesday, Finland's.......>

FINLAND AUCTION PREVIEW: On Tuesday, Finland's State Treasury re-opens RFGB

1.125% Apr-34 for E1bln.

- BACKGROUND: This is the first tap of the Apr-34 since its launch on 6 Feb,

yielding 1.23% on a sale of E3.0bln, with cover of 3.8x. Sale of E1bln would

bring Finland close to halfway in its 2018 planned issuance (E5bln of E11bln).

- RV: The yield on the Apr-34 has fallen by 10.4bps to 1.126% since its initial

sale on 6 Feb, though this is off the lows of 0.948% reached in late May amid

Italian political risk elevating the attractiveness of quality bonds. Since 6

Feb, the long-end of the Finnish curve has underperformed amid a bull

flattening, with the 5-year segment rallying 20bps. Finnish spreads have widened

versus Bunds since Italian political risk spiked in May, with the Apr-34's yield

over the German equivalent (Jul-34) rising from 23bps in early May to 33.8bps at

one point, now trading back at 30.0bps. By comparison, RFGBs have outperformed

other EGBs, moving 7bps further inside French OATs (at 15bps inside), and 14bps

inside Spanish Bonos (to 84bps).

- RESULTS: Auction results are due around 1005GMT.