The Dutch State Treasury......>

DUTCH AUCTION PREVIEW: The Dutch State Treasury Agency (DSTA) re-opens its

10-Year benchmark 0.75% Jul 2027 DSL Tuesday for between E2bln to E3bln

indicative size. It is a fairly standard-sized affair. 

- BACKGROUND: There are no coupon/redemption payments to help. Dutch banks have

sold government bonds in 8 of the past nine months and a E20bln total in the

past 12 months; about 50% of the PSPP buying.

- RV: This particular security is yielding 0.4452%, having trended gradually

lower since hitting 0.77% at the start of July. More important in terms of value

is that the Bund-DSL 10Y spread has narrowed since hitting highs of 13.9bp last

week to 12.3bp. This is not the best set up for a Dutch auction. 

- HISTORY: The 2027 DSL was last sold on Jun 13 at a yield of 0.474% where

E2.3bln was sold. 

- TIMING: DSTA announces the price at which PDs can buy the issue at 0800GMT,

updating thereafter. Often the auction is dispensed with in 15-20 minutes.