On Tuesday, the Austrian....>

AUSTRIA AUCTION PREVIEW: On Tuesday, the Austrian Federal Financing Agency

(AFFA) re-opens E1.38bln total of and RAGB 0.0% Jul-23 and RAGB 0.75% Feb-28. 

- BACKGROUND: There are no coupon and redemptions and Tuesday looks to be

heating up in terms of syndicated EGB deals with Finland doing a 15Y and Greece

doing a 7Y. The Feb-28 only has E4bln outstanding; the benchmark needs building.

- RV: Despite its low liquidity, at the longer end of the curve Austrian debt

yields a good amount less the French yield curve, although this in not the case

below 5Y. For example, the RAGB Feb-28 is ASW- 19.9bp, whereas the OAT is

ASW-15.6bp. There is a notch credit rating difference between Austria and France

but with economic growth improving, credit spreads have tended to occupy the

back-seat so making the 5.5bp spread look generous. The equivalent numbers for

the RAGB 0% Jul-23 is ASW-28.8bp and ASW-30.3bp for OAT 0% Mar-23. So, the OAT

offers only 1.5bp pick up to its Austrian peer.

- RESULTS: Bidding closes at 1000GMT. Auction results are due around 15 minutes

later.