On Wednesday, Germany........>

GERMAN AUCTION PREVIEW: On Wednesday, Germany sells E3bln of the 10Y bmk, 0.5%

Feb-28 

- BACKGROUND: this is just the second outing for this particular security and no

doubt the bidding will depend upon what way the wind is blowing in equity

markets, something that will be difficult to predict and shorten the auction set

up period for dealers.

- RV/HISTORY: The Finanzagentur sold E5bln of this security in early January but

only received 4.6bln of bids, a technically uncovered auction. Indeed, each of a

past 3 auction has been technically uncovered. On the positive side, the 10Y

yield is well above the 0.54% average yield of the 10 January auction and there

may be some buying as peripheral debt looks a little less enticing given the

equity market volatility. Bunds have cheapened to the swap curve.

- RESULTS: Auction results are due shortly after bidding close at 1030GMT.