The Dutch State Treasury......>

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

0% Jan-24 for E1.5-2.5bln on Tuesday.

- BACKGROUND: This is the third re-opening of the 2024 DSL and adds to the

E10.47bln outstanding. If the auction size is near the top end of the indicated

range then the DSTA would have hit 54% of planned issuance for 2018.

- RV: The Jan-24 currently trades at a yield of 0.094% and has sold off from the

2018 low of -0.121% on May 29. Although there is not a directly comparable

German bond, the spread of the Jan-24 DSL over the benchmark 5-year bund has

narrowed to 23bps from 26bps over the same period. On a curve basis the

Jul-23/Jan-24 spread has widened to fresh record high of 14.3bps up from 12.5bp

seen at start of June, while the Jan-24/Jul-24 spread remains relatively steady

at 5bps. The Jan-24/Jul-28 spread has widened 2.2bp to 56.6bps in last 2-weeks

- HISTORY: At the most recent auction of this DSL, the DSTA sold E2.005bln (vs

target of E1.5-2.0bln) at an average yield of 0.087%.

- TIMING: Auction results are due around 0820GMT