The Deutsche Finanzagentur...>

GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur re-open linkers 15-yr 0.50%

Apr-30 Bundei for up to E500mln and 30-yr 0.10% Apr-46 Bundei for E250mln

Tuesday.

- BACKGROUND: This will be the 5th Linker auction in 2018 with the finance

ministry having already raised E3bln in total out of this years target of

between E6-E10bln. This will be the first tap of Apr-46 Bundei since Jan, while

the Apr-30 was tapped at beginning of March.

- RV: The Apr-30 Bundei trades at a bid real-yield of -0.770%, according to

Tradeweb having richened by around 26.5bps since its last tap on Mar 6, but is

above year-to-date low of -0.794% seen on Apr 11. The 15-yr Linker though trades

close to widest level vs 6.25% Apr-30 Bund. The Apr-46 Bundei trades at a bid

real-yield of -0.458%, according to Tradeweb having richened by around 15.5bps

in last 2-months but is also off year-to-date low of -0.538% seen on Apr 11.

While the 30-yr Bund/linker spread trades in middle of its 2018 range.

- Timing: Auction results are due shortly after bidding closes at 0930GMT