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GERMAN T-BILL AUCTION PREVIEW
GERMAN T-BILL AUCTION PREVIEW: The Deutsche Finanzagentur re-opens 6-month Aug
15, 2018 Bubill for up to E2.0bln on Monday.
- BACKGROUND: The first Bubill auction for 2018 did not get off to a good start
with it coming in technically uncovered as overall bids were only E2.53bln
compared to E3bln on offer. It could be that markets are taking a little time to
get used to the different Bubill auction programme this year. Germany plans to
re-open each issue twice more and bring the total size to E7bln.
- RV: The bid-yield for the Aug 15, 2018 Bubill is at -0.631% according to
Tradeweb and is -34.7bp versus Eonia. This compares to a spread of a -28.3bp
seen at the last 6-month Bubill auction.
- HISTORY: For comparison at the last 6-month Bubill auction on Feb 12, the
finance ministry sold E2.285bln at average yield -0.6383%, cover of 1.11 times
and E715mln or 23.8% retained for secondary market operations. 
- REDEMPTION: There will be a Bubill redemption of E2.0bln this week, therefore
leaves net cash flow flat which is seen underpinning demand.
- TIMING: Results due to be announced shortly after bidding closes at 1030GMT.

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