Previewing the E4-6bln new DSL....>

EUROZONE ISSUANCE: Previewing the E4-6bln new DSL 10Y being sold via DDA

tomorrow Richard McGuire at Rabobank notes that based upon previous DDA ranges

provided, one might expect a E5.1bln issuance size.

- Making adjustments to a cubic spline interpolation of the Dutch yield curve,

Rabo sees a spread of "16bp over the German reference bond" and estimate that

"initial spread guidance from the DSTA will be 16-18bp". Spread guidance is

expected at 1400GMT

- Because the Netherlands is so far behind other Eurozone issuers, McGuire

writes that primary dealer balance sheets could be relative light on Dutch

paper. "This lightness could mean that, somewhat counterintuitively, the lack of

Dutch bond issuance this year could prove supportive at the auction of the DSL

0.75% 2028s."

- Note that in the DSL flyer for this issue, the DTSA lists that the new 10Y

will make up E12-15bln of 2018 issuance, DSL 2024 is seen at E9bln and longer

dated DSLs E2-5bln, bring total capital market issuance to E23-29bln.