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Ahead of the French auction today, we looked....>

OAT
OAT: Ahead of the French auction today, we looked at the seasonality in French
bank buying of govt securities. We found that in August, French banks reverse
the buying/selling seen in July (keeping positions down). But, in September, it
seems that the knee-jerk reaction to the return from the vacations is to sell.
In 7 out of the past 9 years, French banks have sold French debt, but turn into
strong buyers in October as redemption and coupon payments leap.

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