CORRECTION: FRANCE AUCTION...>

FRANCE AUCTION PREVIEW: CORRECTION: FRANCE AUCTION PREVIEW: France re-opens the

0.75% Nov-28 OAT, 1.50% May-31 OAT and 1.25% May-34 OAT for E7.0-8.0bln on

Thursday. 

- BACKGROUND: Recent French auctions have been well covered, with a successful

auction tomorrow taking YTD issuance to 69% of target. 

- RV/HISTORY: French OAT yields have fallen since the beginning of the year and

the curve has flattened, but political ructions across the Euro bloc has

triggered volatility. The 0.75% Nov-28 is the benchmark 10-year OAT and has

rallied sharply over the past month. The yield has edged down from 0.904% on

June 11 to 0.637% and trades 26.3bps inside the comparable EUR swap. The 1.25%

May-34 is the benchmark 15-year OAT and the yield has similarly pushed

decisively lower to 1.017 from 1.268% on June 11 and a 2018 high of 1.399% on

Feb 20. The 1.50% May-31 trades at 0.834%, marking a new low for the year. There

are E21.0bn in EGB redemptions and E8.8bn in EGB coupon payments which may

provide some support. 

- TIMING: OAT auction results are due around 0955GMT