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

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

E1.38bln total of RAGB 0.5% Apr-27 and RAGB 4.15% Mar-37. 

- BACKGROUND: The 0.5% 2027 was last issued on 4th July and is 6.6bln in size.

The 2037 is an on-the-run security that trades with a mammoth big figure of 152.

This sleeping beast has not been opened since 2011. Next week, (15th) sees E8bln

of RAGB redemptions and E1bln of coupon payments. Settlement for today's auction

is 7th Sept.

- RV: The German Bund 0.25% Feb-27 to RAGB 0.5% Apr-27 spread is wide at 26.8bp

and could prompt good demand today. There is a very steep swap spread curve

between 7 and 10Y in semi core Europe. The Austrian market also looks cheap to

Belgian and French debt. There has also been a small steepening of the 5- to

10-Year spread in the past few weeks that will not hurt. The re-opening of the

Mar-37 is likely because it traded expensive to the curve and swaps and lacked

liquidity.

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

minutes later.