The Netherlands will come.....>

DUTCH AUCTION PREVIEW: The Netherlands will come to market on Tuesday to sell

the 0% Jul-30 DSL for E1-3bn.

- BACKGROUND: At the previous auction of the 0% Jul-30 DSL on May 12, E2.2bn was

sold at an average yield of -0.21%.

- RV/HISTORY: Mirroring the move in bunds, Dutch bonds have started the week

stronger and the curve has bull flattened. As is the case with bunds, this could

reflect a natural pullback given strong selling pressure at the long end last

week, which pushed the 2s10s spread up to 76bp from 62bp at the beginning of the

week. Spreads over bunds have narrowed with the 10-year spread narrowing to 18bp

from a YTD high of 35bp in March. Tuesday's issue, the 0% Jul-30 DSL, currently

trades at a yield of -0.139% off the recent high of -0.096% and 10bp inside the

comparable EUR swap.

- TIMING: The auction closes at 0900BST.