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Free AccessThe Deutsche..........>
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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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.