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Decent auction

FRANCE AUCTION RESULTS
  • A decent MT OAT auction from France. Like the Spanish auction a few minutes ago we have seen the stop price above the pre-auction mid-price for all three OATs on offer.
  • We have also seen higher bid-to-covers for the 2.50% Sep-26 OAT and the 0.75% Feb-28 OATs (the on-the-run 3/5-year OATs) than in last month's auction.
  • The lower bid-to-cover for the 0% Nov-30 OAT versus the 2.50% May-30 OAT last month is due to the much higher allotment of E4.366bln versus E2.545bln. Indeed, bids for the 0% Nov-30 OAT today were E8.1bln versus E5.9bln last month.
  • In post-auction trading all three OATs moved above the stop price, but we have since seen them move lower in line with other FI markets (albeit continuing to trade above their pre-auction mid-prices at writing).

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