Yields have...........>

GERMAN T-BILL AUCTION PREVIEW: Yields have remained relatively steady at the

start of Autumn as the ECB continues to hint that rates will only rise well

after its asset purchases programme has ended.

- RV: The grey market for the new Mar 14, 2018 Bubill is indicating a mid-yield

of around -0.735% according to Tradeweb. Compared to Eonia, 6-month Eonia is

currently seen at -0.355%, giving a spread of -38bp. This compares to a spread

of a -40.6p seen at the last 6-month Bubill auction.

- HISTORY: At the last 6-month Bubill auction on Sep 11, the finance ministry

sold E1.663bln at average yield -0.7661%, cover of 2 times and E337mln or 16.85%

retained for secondary market operations. Prior to this on Aug 14 E1.417bln was

sold at average yield -0.6963%, cover of 2.41 times and 29% retained. 

- REDEMPTION: There will be a Bubill redemption of E2.0bln this week, therefore

leaves net cash flow flat, which is seen underpinning demand.

- TIMING: Results due to be announced shortly after bidding closes at 0930GMT.