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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: Agence France Tresor (AFT) tap 3-month Nov 1,
2017 BTF for between E2.8-E3.2bln, issue new 6-month Jan 17, 2017 BTF for
between E1.0-E1.4bln and tap 12-month Jul 18, 2018 BTF for between E0.7-E1.1bln
on Monday.
- RV: The belly of the BTF curve outperformed once again last week as Eurozone
PMI confirmed a slight slow down in activity. The 3-month part of the curve is
around 2.5bp lower than last week, while the 6-month is in the region of 3.5bp
lower, while the 12-month part of the yield also around 1.5bp lower.
- REDEMPTION: There will a redemption this week of E8.325bln, therefore could
leave net cash flow negative to the tune of E2.625bln which is seen underpinning
demand at the auction.
- HISTORY: At the Jul 31 auction the AFT allotted E3.393bln 3-month BTF at
average yield of -0.593% with cover of 2.45 times, allotted E1.395bln 6-month
BTF at average yield of -0.584% with cover of 3.38 times and allotted E1.297bln
12-month BTF at average yield -0.546% and cover of 3.21 times. 
- TIMING: Results due to be announced at around 1255GMT.

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