Bund auction: tapping existing 4% jan 18s. Some pre-auction concession, both locally and more importantly yld curve wise. The main POSITIVES' for the auctions' are the recent Asian CB sponsorship for 10yr paper and it's cheap valuations' vs July17s (buyers' with roll above 4/4.25). BUT NEGATIVES include 10yr supply elsewhere (new 10yr Spain and Austria were priced against it). PLUS, witht the March delivery around the corner and Jan 17s being as cheap as it is, being long the 10yr basis is not looking attractive. Dealers' are looking to cover their shorts in the auction and favour coming out of it small long vs July 17s.