On Tuesday, the Dutch State...>

DUTCH AUCTION PREVIEW: On Tuesday, the Dutch State Treasury Agency (DSTA)

re-opens its 10-Year benchmark 0.75% Jul 2027 DSL Tuesday for between E2bln to

E3bln indicative size. It currently has E12.5bln outstanding. 

- BACKGROUND: There are no coupon or redemptions from the core/semi core this

week but the supply outlook is good for the Netherlands. Looking into 2018,

reduced net supply taking into account PSPP is said to favour Dutch paper most

of all according to Orlando Green at Credit Agricole. 

- RV: Nearly all spreads to Germany are tight and the Dutch 10Y is at its

leanest since January and also in single figures at 9.9bp. With an outright

yield of 0.5%, the July-27 sits toward the bottom of the yield range for the

year. On the positive side, the spread between the 0.5% Jul-26 and the 0.75%

Jul-27 is the steepest since July at 16bp.

- HISTORY: The 2027 DSL was last sold on Sep 12 when they issued E2.2bln via a

DDA at a yield of 0.475%. 

- TIMING: DSTA announces the price at which PDs can buy the issue at 0900GMT,

updating thereafter.