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On Wednesday, Germany will...>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: On Wednesday, Germany will sell E4bln of the new 10-yr
Bund, with a zero coupon and a maturity date of Aug-2029. This will be only the
second zero-coupon Bund outstanding, with the other the 0% Aug-2026 Bund
launched three years ago.
- BACKGROUND: The current 10-yr benchmark, 0.25% Feb-29 Bund, was last sold on
June 12, at an average yield of -0.24%, Buba cover of 1.7x, and real cover of
1.4x. The yield of -0.24% was the lowest ever yield recorded at a German 10-yr
auction. Since then, the yield on the Feb-29 Bund traded below -0.40% on July 4.
Bund yields are a little higher than this now, but it would not be a surprise
for the auction to see a lower yield than the record auction yield of -0.24%.
- TIMING: Auction results are due out around 10:30 BST.

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