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3/4/6-year OATs

FRANCE AUCTION PREVIEW
MNI (London)
  • On offer today: E10.0-11.5bln of 3/4/6-year OATs
    • 0% Feb-25 OAT (ISIN: FR0014007TY9)
    • 0% Feb-26 OAT (ISIN: FR0013508470)
    • New 0.75% Feb-28 OAT
  • Market colour: OAT yields have risen strongly since the beginning of the year, recovering from transitory falls of around 40bp at the onset of the Ukraine war at the end of February. Highs of 0.758%, 0.932% and 1.112% were reached on May 6. Yields have since softened approx. 15bp off these highs.
  • 3-year spreads to the 0% Apr-25 Bobl widened around 4bp since Feb 1, reaching a high of approx. 23bp on March 4 and since narrowing to around 20.0bp. 0% Feb-26 OAT spreads to the 0% Apr-26 Bobl have been in a 15-27bp range since late-January and are currently around 20.8bp at time of writing.
  • Timing: Results will be available shortly after the auction closes at 0950 BST / 1050 CEST.

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