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10/15y Linkers

FRANCE AUCTION PREVIEW
MNI (London)
  • On offer today: E1.0-1.5bln linkers
    • 0.10% Jul-31 OATei (ISIN: FR0014001N38)
    • 0.10% Mar-32 OATi (ISIN: FR0014003N51)
    • 0.10% Mar-36 OATi (ISIN: FR0013524014)
  • Market colour: Linker yields fell by around 85-120bp at the onset of the Ukraine war at the end of February. Yields were around the -1.50% to -1.60% mark to the beginning of May, before rising again by 30-40bp over the first weeks of May.
  • 10-year breakevens to the OAT rose around 112bp from mid-Feb to the April 29 high of 300.6bp for the 2031 linker and the May 4 high of 286.3bp for the 2032 linker. The breakevens have since narrowed to 257.5 at time of writing.
  • 15-year OATi breakevens to the OAT rose approx. 100bp since mid-Feb to the May 5 high of 278.4bp, and have since narrowed around 26bp at time of writing.
  • Timing: Results will be available shortly after the auction closes at 1050 BST / 1150 CEST.

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