The Finanzagentur will tap...>

GERMAN AUCTION PREVIEW: The Finanzagentur will tap the market for E0.7bln on

Tuesday. On offer are the 0.10% Apr-26 Bundei and the 0.10% Apr-46 Bundei.

- BACKGROUND: Germany is marginally behind the rest of the eurozone in terms of

issuance with 38.3% of the 2019 target currently met compared to 41.7% for the

wider euro bloc. The 0.10% Apr-26 Bundei was last tapped on March 5 with

E0.60bln allotted at an average yield of -1.12%, a bid-to-cover ratio of 1.39x

and buba cover ratio of 1.70x. The 0.10% Apr-46 Bundei was re-opened on February

5 with E0.13bln allotted at an average yield of -0.69%, bid-to-cover ratio of

0.74x and Buba cover of 1.75x. 

- RV/HISTORY: German bunds have progressively rallied since last October and the

curve has flattened on the back of a deterioration in growth and inflation

expectations. Yields on bund linkers have dropped sharply since the beginning of

March, with the 0.10% Apr-26 Bundei - serving as the 10-year benchmark - trading

down to a low of -1.381% on April 2 from -1.079% at the beginning of March, and

has most recently inched up to -1.274%. 

- TIMING: Results are due shortly after the auction closes at 1030BST.