The Austrian Federal........>

AUSTRIA AUCTION PREVIEW: The Austrian Federal Financing Agency (AFFA) re-opens

E1.1bln total of RAGB 1.75% 2023 and RAGB 1.5% Feb-47. 

- BACKGROUND: The 1.75% 2023 was last issued in February and is already a fairly

large E10.5bln in size and trades with a 111-handle. The 2047 is an on-the-run

security that has already been issued 3 times this year and generally quite

successfully.

- RV: The 10-Year German Bund to Austrian Bund spread is 16.9bp and close to the

lowest since August last year. The last time the 30-Year was issued on July 4,

the yield was 1.60% and cover 2.57x. The 1.75% 2023 appears expensive in yield

and asset swap terms to the to the more useful and liquid 0% Jul-23 and is

likely a primary dealer request. Curve-wise, the slope has shown little change

since last year and offers no obvious extension trade. Relative to other 30Y

bonds the RAGB 2047 swaps 24bp cheaper than the DSL 2.75% Jan-47. 

- RESULTS: Bidding closes at 0900GMT/1000BST. Auction results are due around 15

minutes later.