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Peter Chatwell and Antoine Bouvet write.......>

BUNDS
BUNDS: Peter Chatwell and Antoine Bouvet write that "The technical backdrop to
the 30Y Aug48 Bund auction today is positive in our view as this will be the
first tap of this issue and will take its outstanding to only EUR 3bn. In
addition, repo levels suggest a short base which should boost demand at the
sale. We find it difficult to justify the current Aug46-Aug48 roll level even
adjusting for convexity. We attribute current valuation to the scarcity of Aug48
which should subside over time and result in a steepening of the roll"

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