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France also taps 3 linker....>

FRANCE AUCTION PREVIEW
FRANCE AUCTION PREVIEW: France also taps 3 linker issues Thursday but ONLY 'ei',
no French inflation linkers. OATei 0.1% Mar-21, OATei 0.25% Jul-24 and OATei
0.1% Jul-47 in a fairly standard size of E1.5bln-E2bln. 
- BACKGROUND: There are no coupon or redemption flows this week. 
- RV: Breakevens have been rising fair smartly in recent months helped by oil
prices firming (until recent days). Looking at the 10Y French and EUR ZC
inflation swaps, the additional breakeven advantage of French inflation has been
declining since peaking in April at 20bp and is now only 3bp, not helping demand
for the OATei that are on sale on Thursday. 
In recent days, the euro has appreciated despite pre-existing very large CME
long positions, which might limit the sustainability of the Euro's move.
Bid-cover ratios at French linker auctions have been growing gradually through
this year but are typically around 1.8x.
- RESULTS: Linker bidding closes at 1050GMT. Results due around 1100GMT.

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