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The Deutsche Finanzagentur...>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur re-opens its 30-year
benchmark 1.25% Aug-48 Bund for EUR1.5bn on Wednesday.
- BACKGROUND: This is the sixth tap of the 2048 Bund, with EUR7bn outstanding. 
- RV: The yield on the Aug-48 Bund is currently trading at 1.257% on 9 May,
around 4bps below the yield at issuance in September 2017. The buxl yield has
traded up around 5bps since 7 May and is a touch above the level at the last
auction on 14 March (1.248%). The 10-30Y spread has widened by 9bps since the
2018 low on 12 February and continues to push higher. There is E0.54bn in coupon
payments this week which will provide some support for demand.
- HISTORY: German 30Y auctions are usually well covered.  The five auctions of
the Aug-48 have averaged a BUBA-calculated cover ratio of 1.51x and a bid/sale
of 1.24x. That said, the last auction of the Aug-48 went uncovered, with a
bid/sale of 0.85.
- RESULTS: Auction results are due shortly after bidding closes at 0930GMT

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