The Deutsche Finanzagentur...>

GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur re-opens its 13-Year linker

Bundei 0.5% Apr 2030 issue on Tuesday for up to E0.5bln in size. 

- BACKGROUND: This tap will bring the outstanding up to a still fairly modest

E9.5bln. There is also E3bln of a 5Y Obl being sold tomorrow and the UK DMO may

well start selling its Gilt 0.125% Aug-48 on Tuesday via syndication.

- History/RV: The German real yield curve slope has steepened fairly

consistently over the past year. For example, the Bundei23 vs Bundei 30 spread

is 67bp, just 1bp from all-time (near 4 year) highs. However, outright, real

yields have dropped significantly as breakevens have crept higher and the -0.73%

real yield is close to its lowest levels since May at -0.73%. The last time this

2030 was issued in July, the cover was 2.0x (Buba calculated) at a yield of

-0.45%. 

- Timing: Auction results are due shortly after bidding closes at 1030GMT.