3y OAT, 5y OAT, off-the-run 8y OAT​

France will come to the market this morning to sell E9.5-10.5bln of MT OATs.

• 0% Feb-24 OAT: This 3-year OAT was launched last month via auction with E3.74bln sold from bids of E8.77bln. We would expect demand to drop a little today (with launch auctions often getting higher bids) but we note that every auction of the 0% Feb-23 OAT in 2020 saw bids of at least E6.70bln and a bid-to-cover of at least 2.30x. We would therefore expect another strong auction today.
• 0% Feb-26 OAT: This may be one of the last auctions of the current 5-year benchmark before a new 5-year OAT launches (with one due in the next few months). There is already E31.4bln outstanding of the 0% Feb-26 OAT but we note the continued strong demand. Last month's auction saw bids of E8.42bln with E4.01bln sold, achieving a bid-to-cover of 2.10x.
• 0.50% May-29 OAT: This OAT was only sold once during 2020, with the 5 November auction seeing bids of E6.35bln with E3.50bln sold with a cover of 1.81x. Demand for these off-the-run OATs has remained strong, although the amount bid and sold tend to be a bit lower than the on-the-run issues sold alongside them.