Slovakia taps 2 lines of...>

SLOVAKIA AUCTION PREVIEW: Slovakia taps 2 lines of bonds on Monday, E80mln of

SLOVGB 1.625% Jan-31 (#229) and E80mln SLOVGB 2% Oct-47 (#233). 

- BACKGROUND: Today is the second Slovakia auction of the year. There is little

in the way of EGB redemption and coupon payments until Friday. 

- RV/HISTORY: The Slovakian yield curve tends to trade at a small yield premium

to the Irish curve but has underperformed Ireland this year, particularly in the

10Y+ section of the yield curve, which is the offering today. Slovakia has

almost identical credit ratings to Ireland and much of the yield premium is

justified by the near zero liquidity. Slovakian auctions are liquidity events

and so the offering should go well. The #229 was last sold in April last year,

but with a modest cover of 1.79x. The #233 is a fairly new bond and was sold on

10 Oct via syndication. 

- TIMING: Auction cut-off at 1000GMT, results are due around 1015GMT.