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On Wednesday, the Deutsche...>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: On Wednesday, the Deutsche Finanzagentur will re-open
the 1.25% Aug-48 Buxl for E1.0bln.
- HISTORY: The Aug-48 was last sold on January 16, with average yield of 0.85%
and 0.89x real cover (Buba cover of 1.11x).
- BACKGROUND/RV: The 2048 is the benchmark 30-Yr, and this sale will be a good
test following recent underperformance at the ultra long end of the German
curve. The 10s/30s spread has widened from 56bps in early January to 66bps, even
as the 30-Yr yield has fallen 12bps to 0.72%. Buxl swap spreads have compressed
as well, falling from 63bps in early January to just below 49bps earlier this
week, though jumped back higher Tuesday amid renewed Brexit vote risk (last just
under 52bps).
- TIMING: Results are due shortly after the auction closes at 1030GMT.

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