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The Deutsche Finanzagentur...>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur will tap the Oct-23 Bobl for
E3.0bln on Wednesday.
- BACKGROUND: The Oct-23 Bobl is the 5-year benchmark with E7.0bln outstanding.
- RV/HISTORY: German bunds have sold off in September and the curve has
steepened. The 2-year benchmark trades at -0.516% up from -0.611% on September 3
while the 10-year trades at 0.525% up from 0.332%. At the last tap of the Oct-23
Bobl on August 29 E3bln was allotted at an average yield of -0.18%, a
bid-to-cover ratio of 1.67 and Buba cover of 2.0x. The issue currently trades at
-0.050%, up from a YTD low of -0.386% on May 29 and 45.9bps inside the
comparable EUR swap.
- REDEMPTIONS: There are an estimated E0.23bln in EGB redemptions this week and
E2.52bln in coupon payments.
- TIMING: Results are due shortly after the auction closes at 0935GMT.

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