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On Wednesday, the German.....>

GERMAN AUCTION PREVIEW: On Wednesday, the German Finanzagentur will raise up to
E3bln via a re-opening of the 0.25% Feb-29 Bund.
- BACKGROUND: At the last sale of Feb-29 Bund in April, Germany sold E2.45bln at
0.02% average yield and real bid-to-cover of 1.6x (Buba cover of 2.0x). The sale
comes a day before EU elections.
- RV: The 10-Yr benchmark has been mired in negative yield territory since May
7, touching lowest levels (-0.132%) since October 2016 amid concerns over
Eurozone growth and a safe haven bid due to renewed global trade war fears. Vs
semi-core, Bunds have gotten a little richer, with France now 39.1bps wide vs
below 30bps a month earlier. Likewise with periphery EGBs: BTPs are now 270.5bps
wide of Bunds, vs 257bps a month ago. Bunds are trading 50.9bps inside swaps,
just off cheapest levels (49.1bps) since June 2018 in mid-April/early May.
- POSITIONING: Bund (RX) futures structural positioning has shifted to a
relatively flat position since the beginning of May when net shorts were biggest
since November 2018, according to MNI`s Positioning Indicator.
- TIMING: Auction results are due out around 1030 UK time.

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