The Dutch State Treasury......>

DUTCH AUCTION PREVIEW: The Dutch State Treasury Agency (DSTA) re-opens the 4.0%

Jan-37 DSL Tuesday for between E0.75-1.25bln.

- BACKGROUND: This is the first tap of the Jan-37 since September 2016; the bond

was launched in 2005. At E14.8bln outstanding currently, a sale at the top end

of the range would make this bond the second-largest DSL outstanding at

E16.1bln(behind only the 3.25% Jul-21 at E16.5bln).

- RV/HISTORY: The Jan-37 DSL, at current mid-yield of 0.843% according to

Tradeweb data, is trading wider to its German equivalent since the beginning of

2018, with the spread rising from a low of 0.8bps in February to 6.8bps

currently. While shy of the 8.9bps high set May 29 amid the height of the

Italian political crisis, this is 4bps cheaper than six weeks ago. On an

absolute basis, the yield is trading slightly above the bottom of its 2017-18

low of 0.74%, but well below the high of 1.18%. There are no major redemptions

for the Netherlands this week, but overall a E13bln will help keep net cash flow

returning to the EGB market at over E4.0bln this week, potentially supporting.

- TIMING: Results are due around 0820GMT.