- The DSTA will auction its 5y benchmark for the last time tomorrow
- The target range is EUR 2-3bn, we expect an issuance size at the low end of the range
- The Dutch transaction will take place in rather favourable market conditions, after Macron won the second round by a wider margin than polls suggested
- We calculate that after tomorrow’s deal the Dutch year-to-date funding will increase to 55% of our annual bond target of EUR 31bn
- The Dutch 5y benchmark is cheap in ASW vs its own peers, while French bonds seem to have run their course and look therefore stretched
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