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

GERMAN T-BILL AUCTION PREVIEW: The Deutsche Finanzagenture will issue a new

0.00% Apr-24 Bobl for E4.0bln today.

- BACKGROUND: Germany has tapped the market for E6bln so far this year,

including E0.5bln in linker issuance. The last auction was technically uncovered

and the demand for the previous two was not particularly strong, especially

compared to the hefty order book for yesterday's new 10-year Spanish bond. 

- RV/HISTORY: It has been a relatively choppy start to the year for German

bunds, which have had to contend with weakening domestic economic growth, a drop

in inflation and unresolved external headwinds. The global equity market

correction during the tail end of 2018 has further added to economic

uncertainty. Yields are several basis points higher from the January lows and

the curve is slightly steeper. For illustrative purposes, the 5-year benchmark

trades at -0.304% up from a YTD low of -0.398% and trades 53.1bps inside the

comparable EUR swap.

- TIMING: Results are due shortly after the auction closes at 1030GMT.