On Tuesday, Germany..........>

GERMAN AUCTION PREVIEW: On Tuesday, Germany conducts the first of two auctions

this week, re-opening 0.50% Apr-30 BundEi for up to E0.75bln.

- HISTORY: The Apr-30 index-linked Bund was last sold on Jan 8, at average real

yield of -0.83%, and cover ratio of 1.9x.

- BACKGROUND/RV: Real yields have fallen substantially since the last time the

Apr-30 was sold three months ago, with the linker curve bull steepening. This

has been a reaction to a marked deterioration in the German growth outlook, with

Germany's leading economic institutes last week slashing their 2019 growth

forecast to 0.8% from their previous prediction of 1.9%. The 2-Yr has dropped

102bps to -1.542%, while the 5-Yr is down 37bps at -1.540%, and the 10-Yr is

down 31bps at -1.356%. Further out, the 15-Yr, which is on sale Tuesday, has

lagged the rally, with a 28bps fall in real yield to -1.114%. With a 15-Yr

nominal yield of 0.229%, 15-Yr breakeven inflation is down to 134bps, roughly

flat compared with the beginning of the year.

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