[Exim] SQL connection problem with -bh

This is exim 4.14
SQL queries work fine until it hit the data acl.

>>> using ACL "acl_check_data"
>>> processing "deny"
>>> check sender_domains = +local_domains
LOG: 19D5zI-0000k6-UX failed to expand "localhost : /etc/exim4/localdomains
: ${lookup mysql{select domain from eximconf.localdomains where
enabled='yes' } {${sg{$value}{\N\ *\n\N}{ : }}} }" while checking a list:
lookup of "select domain from eximconf.localdomains where enabled='yes' "
gave DEFER: MYSQL connection failed: Unknown MySQL Server Host 'cd' (4)
>>> electro-mechanical.com in "+local_domains"? lookup deferred for
+local_domains
>>> deny: condition test deferred
451 Temporary local problem - please try later
LOG: 19D5zI-0000k6-UX H=internal-bristol21.naxs.com (x) [216.98.66.21]
F=<wt@???> temporarily rejected after DATA: MYSQL
connection failed: Unknown MySQL Server Host 'cd' (4)

This is what happened. I watched the sql log and exim closed the connection
during the time I was entering the data and apparently didn't attempt to
reconnect.

Anyone else ran into this?

If I send the same message with exim -bs it works ok.