Today, Germany sells E3bln...>

GERMAN AUCTION PREVIEW: Today, Germany sells E3bln of the 5-yr benchmark 0.0%

Obl Apr-23. 

- BACKGROUND: This is the fourth tranche of this Obl. Cover at the last Obl

auction picked up mainly due to the lower amount on offer but with no redemption

or coupon payments due from core EGBs markets this week, it could fail to

attract decent demand.

- RV/HISTORY: Yield slipped below 0% last week but remains above all time low

for this bond of -0.117% and is currently seen at -0.052% but above the average

seen at last auction on Apr 4. The spread between the old benchmark the Oct-22

and the new, the Apr-23 is 10.4bp towards the middle of its range. Versus other

core EGB markets the Bobl has underperformed with spread to Jul-23 DSL now -7bps

close to tightest levels, while is -10bp vs May-23 OAT just off low of -9bps.

The 6 auction average Buba-calculated bid-cover ratio is 1.46x, or 1.19x when

the cover ratio is calculated more conventionally.

- RESULTS: Auction results are due shortly after bidding close at 0930GMT.