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US EURODLR FUTURES

EDZ4/Z5 Steepener Flow

AUSSIE 10-YEAR TECHS

(Z1) Near-Term Strength Persists

The Deutsche..........>

GERMAN T-BILL AUCTION PREVIEW
GERMAN T-BILL AUCTION PREVIEW: The Deutsche Finanzagentur launches a new 6-month
Dec 5, 2018 Bubill for up to E3.0bln on Monday.
- BACKGROUND: This is the first new Bubill since the Oct 10, 2018 bubill was
launched back on Apr 9. The Dec 5, 2018 bubill will be tapped on Jul 9 and then
again on Sep 24.
- RV: The grey market is indicating a mid-yield for the new Dec 5, 2018 Bubill
is at -0.623% according to Tradeweb and is -26.7bp versus Eonia and is currently
a 0.2bp premium vs the Oct 10, Bubill.. This compares to a spread of a -24.6bp
seen at the last 6-month Bubill auction.
- HISTORY: For comparison at the last 6-month Bubill auction on May 28, the
finance ministry sold E950mln at an average yield of -0.6047%, cover of 2.7
times and E1.05bln or 2.5% retained for secondary market operations. Average
cover for bubill auctions this year is 1.7 times.
- REDEMPTION: There will be no Bubill redemption this week, therefore leaves net
cash flow negative to the tune of E3.0bln which is seen weighing on demand.
- TIMING: Results due to be announced shortly after bidding closes at 0930GMT.