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

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

E1.15bln total of and RAGB 0% Sep-22 and RAGB 0.5% Apr-27. 

- BACKGROUND: For Austrian auctions, this is not a lot of duration, nor nominal

amount being sold. In fact, it will be the lowest of the year but there are no

coupons or redemptions to help from Austria or core Europe. This auction should

satisfy 2017 issuance needs but there is a December auction date that is

unlikely to be dropped. 

- RV: The German Bund 0.25% Feb-27 to RAGB 0.5% Apr-27 spread is toward the

narrow end of its 3-month range at 23.6bp. Austrian paper generally trades

cheaper to France/Belgium in the front end (up to 5Y) but increasingly expensive

as the maturity increases. There should be decent demand for the 5Y on sale

Tuesday, particularly as the 5Y has not been re-opened since E4bln was first

sold via syndication in mid-Sept. The 10Y was last sold on Sep 5 at a yield of

0.543% and 2.36x cover.

- RESULTS: Bidding closes at 1000GMT. Auction results are due around 15 minutes

later.