5/30y OATei and 15y OATi

France will also come to the market today to sell E1.25-1.75bln linkers.

• 0.10% Mar-26 OATei: The 5-year benchmark OATei was most recently sold in November. The auction saw very strong demand with bids of E2.45bln, achieving a bid-to-cover of 3.80x on the E0.64bln sold. E5.15bln of the OATei is currently outstanding. At present we think that it is unlikely that another 5-year OATi or OATei will be issued in 2021, so this bond will remain the benchmark through this year.
• 0.10% Mar-36 OATi: The 15-year OATi benchmark was launched in July via syndication with a nominal E3bln sold from books of E16bln. The linker was then reopened twice via auction last year, in October and November, with a further E1.04bln sold. These auctions saw bid-to-covers of 2.97x and 4.14x respectively.
• 0.10% Jul-47 OATei: This is the longest currently outstanding French linker. It was launched back in 2016 as the 30-year benchmark and was tapped via auction four times in 2020 (roughly once per quarter although the last sale was in September). This auctions saw nominal bids of E712mln with E177mln sold in the first round at a real yield of -0.91%. A the time of writing, the prevailing yield is only marginally higher at -0.88%.