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GERMAN T-BILL AUCTION PREVIEW
GERMAN T-BILL AUCTION PREVIEW: The Deutsche Finanzagentur re-opens its Oct 10,
2018 Bubill for up to E2.0bln on Monday.
- BACKGROUND: This is will be the last re-opening of the Oct 10, 2018 Bubill
which currently has E5bln outstanding.
- RV: The bid-yield on the Oct 10, 2018 Bubill is currently seen at -0.609%
according to Tradeweb having traded between -0.541% and -0.618% since its launch
on Apr 9 and is -28.9bp versus Eonia and is currently a 2bp premium vs the Aug
15, Bubill. This compares to a Bubill/Eonia spread of a -25.7bp seen at the last
6-month Bubill auction.
- HISTORY: For comparison the Oct 10, 2018 Bubill was last tapped on May 14,
where the finance ministry sold E1.99bln at an average yield of -0.6158%, cover
of 1.5 times and E10mln or 0.5% 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 E2.0bln which is seen weighing on demand.
- TIMING: Results due to be announced shortly after bidding closes at 0930GMT

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