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The Deutsche Finanzagentur...>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur will tap the market for
E0.75bln today. On offer is the 0.10% BundEi Apr-26.
- BACKGROUND: At the latest auction of the 0.10% BundEi Apr-26, E0.50bln was
sold at an average yield of 1.11%, a real bid-to-cover ratio of 1.60x and Buba
cover of 1.72x. 
- RV/HISTORY: The German bund curve has progressively flattened since the
beginning of the year, continuing the trend in place since Q1 2017. A hefty
shock to the industrial sector and lingering uncertainty over the economic
outlook and trajectory for inflation has exerted considerable pressure on the
long-end of the curve. Inflation breakevens have been comparatively stable,
which partly reflects an already deeply negative yield. The 0.10% BundEi Apr-26
trades at -1.124% down from -1.052% at the beginning of the year. 
- TIMING: Results are due shortly after the auction closes at 1030GMT.

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