###POV. LOOKING AT FAIR VLAUE FOR THE NEW......>

BOBL: ###POV. LOOKING AT FAIR VLAUE FOR THE NEW OBL.

- Looking ahead to the launch E4.0bln of the new 5Y 0% Obl Apr-23 on Wednesday.

MNI sees a fair value spread to the Obl 0% Oct-22 of 9bp but the likely positive

auction yield may see the spread tighter at around 8.5bp. Normally, Obl auctions

are very thinly bid and three of the past ten auctions have been technically

uncovered. However, the absolute yield has gone up significantly and the 5Y has

underperformed on the 2-5-10Y fly.

- Existing Bobl rolls from Oct-21 to Apr-22 is 9.4bp, from Apr-22 to Oct-22 is

9.9bp. We also looked at the Obl swap spread curve and believe that the new Obl

should come around 1.1bp cheaper than the current Obl 0% Oct-22 of ASW-41.8bp.

When this is calculated, we see a mid-yield spread between Oct-22 and Apr-23 of

9bp.