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GERMAN T-BILL AUCTION PREVIEW
GERMAN T-BILL AUCTION PREVIEW: The Deutsche Finanzagentur re-opens 6-month Aug
15, 2018 Bubill for up to E2.0bln on Monday.
- BACKGROUND: This will be the second and final tap of the Aug 15, 2018 Bubill
and would bring the total amount outstanding to E7bln.
- RV: The ask-yield for the Aug 15, 2018 Bubill is currently trading at -0.698%
having moved up from record low of -0.815% on March 26 according to Tradeweb and
is -27bp versus Eonia. This compares to a spread of a -25.7bp seen at the last
6-month Bubill auction.
- HISTORY: For comparison at the last 6-month Bubill auction on May 14, 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. 
- 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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