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The Deutsche Finanzagentur...>

GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur will re-open the 0.25% Aug-28
bund for E3.0bln on Wednesday.
- BACKGROUND: Germany is broadly on target for issuance this year with 77% of
planned 2018 issuance already met compared to 79% for the broader eurozone. The
0.25% Aug-28 bund is the 10-year benchmark with E13bln outstanding.
- RV/HISTORY: In line with the acceleration in domestic and regional inflation,
German yields have pushed higher since the summer and the curve has steepened
since the beginning of September. The 2s10s spread has pushed up to 107.9bps
from 93.3bps on September on September 3. The 0.25% Aug-28 has sold off since
the beginning of August with the yield pushing up to 0.543% from 0.302% on
August 20. The issue currently trades 49.9bps inside the comparable EUR swap.
- TIMING: Results are due shortly after the auction closes (at 0935GMT)

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