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

GERMAN T-BILL AUCTION PREVIEW: The Deutsche Finanzagentur re-opens its Dec 5,
2018 Bubill for up to E2.0bln on Monday.
- BACKGROUND: This is the first re-opening of the Dec 5, 2018 Bubill which has
currently E3bln outstanding and is scheduled to be tapped again on Sep 24 to
bring total of E7.0bln.
- RV: The mid-yield on the Dec 5, 2018 Bubill is currently seen at -0.634%
having traded between -0.595% and 0.644% since its launch on Jun 11 and is
-27.6bp versus Eonia and is currently a 2.5bp discount vs the Oct 10, Bubill.
This compares to a Bubill/Eonia spread of a -26.last 6-month month
- HISTORY: For comparison at the at the launch of the Dec 5, 2018 Bubill on Jun
11, the finance ministry sold E2.875bln at an average yield of -0.6166%, cover
of 1.7 times and E125mln or 4.2% 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 E2.0bln which is seen weighing on demand.
- TIMING: Results due to be announced shortly after bidding closes at 0930GMT.

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