The Dutch State Treasury......>

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

10-year benchmark 0.75% Jul 2028 DSL Tuesday for between E1.5bln to E2.5bln

indicative size.

- BACKGROUND: This will be the second re-opening of the new 10-yr bond and

currently has E7.65bln outstanding. The DSTA have indicated to raise the

outstanding size to minimum of E12bln by end of 2018. There is a E12.9bln DSL

redemption next week which could provide some tactical support

- RV/HISTORY: Relative value of the 0.75% Jul 2028 DSL is a little mixed. On a

Yield basis it is trading close to record low of 0.434% seen on Jun 22 at

0.464%, thanks to some flight-to-quality buying and this richness shows up vs

swaps with spread at -39.7bps having traded in a -29.4bp to -42.3bp range.

However comparing to OAT's the 10-yr DSL is trading at the cheaper end of the

recent range at -18.8bp vs high of -17.1bp on Jun 18 and low of -23.5bp on Jun

8, but at the more expensive end of the range vs German 10-yr Bund (15.3bp vs

high of 20.9bp and low of 13.2bp). The DSL was last tapped on May 8 where

E1.79bln was sold at 0.676%. Results are due around 0820GMT.