RESEND: Austria's Federal...>

AUSTRIA AUCTION PREVIEW: RESEND: Austria's Federal Financing Agency will tap the

market for E1.15bln on Tuesday. On offer are the 0.50% RAGB Feb-29 and the 1.50%

RAGB Feb-47. 

- BACKGROUND: At the last auction of the 1.50% RAGB Feb-47, E0.50bln was sold at

an average yield of 1.36% and bid-to-cover of 2.12x. The 0.50% RAGB Feb-29 was

last tapped for E5.0bln with an average yield 0.55% and bid-to-cover of 3.74x. 

- RV/HISTORY: The Austrian sovereign curve has steepened since the beginning of

February on the back of the longer-end underperforming. Both issues up for

auction today have rallied since October, but have pulled back in February. The

0.50% RAGB Feb-29 trades at a yield of 0.509% up from a February low of 0.444%,

while the 1.50% RAGB Feb-47 trades at a yield of 1.256% up from a low of 1.181%

on February 22. Although the 1.50% RAGB Feb-47 trades close to fair value, the

0.50% RAGB Feb-29 trades 18.7bps inside the comparable EUR swap. 

- TIMING: Results are due shortly after the auction finishes at 1015GMT.