3/5/7-year OATs

France will come to the market today to issue E8.5-9.5bln of MT OATs. On offer will the the benchmark 3y and 5y OATs as well as the 7 year 0.75% May-28 OAT.

• 0% Feb-24 OAT: The 3-year OAT was launched in January and reopened in February with E8.1bln of the OAT sold so far. Demand has been strong with cover ratios of 2.34x and 2.33x at the auctions respectively. We expect another strong auction today.
• 0% Feb-26 OAT: This is likely to be the last auction of the 0% Feb-26 OAT with a new 5-year benchmark likely to be issued in next month's MT OAT auction. Last month saw the second lowest bid amount of the issue since its launch, albeit with a still healthy E6.91bln of demand which resulted in a bid-to-cover of 2.60x. Indeed, with only E2.66bln sold, the bid-to-cover of 2.60x was the highest since launch.
• 0.75% May-28 OAT: The 0.75% May-28 OAT was last issued on 17 September with bids of E2.00bln sold from bids of E5.51bln, resulting in a bid-to-cover of 2.76x. So far this year, the only 7-year OAT issuance has seen the 0.75% Nov-28 OAT sold on 21 January. E4.68bln was bid with E2.25bln allocated, resulting in a bid-to-cover of 2.08x.