The Dutch State........>

DUTCH T-BILL AUCTION PREVIEW: The Dutch State Treasury Agency (DSTA) sell new

6-month Feb 28, 2019 DTC for up to E2.0bln on Monday.

- BACKGROUND: At the last 6-month DTC sale on Aug 6, the DSTA sold E1.97bln at

-0.64% average yield and 1.5x cover ratio.

- RV: Since that auction, the 6-month bill has underperformed amid significant

bull flattening in the Dutch curve, with its yield falling just 0.3bps to

-0.63%, compared with a 2.2bps fall in the 3-month DTC to -0.584%, and falls of

up to 5bps for Dutch DSLs further down the curve. Versus German equivalents,

6-month DTC spreads are flat, having fluctuated between 2.6bps inside and 3.5bps

outside Bubills over the past month.

- REDEMPTIONS: Potentially weighing modestly on demand is that there are no

Dutch DTC redemptions this week, with overall Eurozone redemption flows light

with just E1.0bln from Greece, leaving cash flow positive in the Eurozone by

around E10.5bln compared with negative E4.9bln last week.

- TIMING: Results are due to be announced at around 0940GMT.