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The Finanzagentur will tap...>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: The Finanzagentur will tap the market for E3.0bln on
Wednesday. On offer is the 0.00% Apr-24 Bobl.
- BACKGROUND: Wednesday's auction follows the sale of two bund linkers on
Tuesday. The 0.00% Apr-24 Bobl was last tapped on April 10 with E2.48bln
allotted at an average yield of -0.41%, bid-to-cover ratio of 1.49x and Buba
cover of 1.80x.
- RV/HISTORY: The renewed flare up in the US-Chinese trade dispute has once
again focused attention on the risks to international trade and the numerous
headwinds to global growth. This has pulled down longer-end bund yields and
flattened the bund curve. The 0.00% Apr-24 Bobl serves as the 5-year benchmark
and has similarly rallied following the fresh slew of US-China trade headlines.
The issue currently trades at a yield of -0.457%, marking a fresh low for the
year and is also the lowest reading since 2017. The issue trades 45.8bps inside
the comparable EUR swap.
- TIMING: Results are due shortly after the auction closes at 1030BST.

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