France is the biggest........>

FRANCE AUCTION PREVIEW: France is the biggest issuer this week with taps of the

0.0% Nov-30 OAT, 1.25% May-34 OAT, 1.75% Jun-39 OAT and the 0.75% May-52 OAT

targeted to raise E10.25-11.75bn. 

- BACKGORUND: Previous auction results (date, volume, average yield,

bid-to-cover): 0.0% Nov-30 OAT (4 Jun 2020, E5.10bn, 0.07%, 1.91x), 1.25% May-34

OAT (6 Feb 2020, E1.57bn, 0.16%, 2.00x), 1.75% Jun-39 OAT (2 Apr 2020, E2.00bn,

0.51%, 1.90x), 0.75% May-52 OAT (4 Jun 2020, E2.19bn, 0.79%, 2.16x).

- RV/HISTORY: Mirroring the broader EGB trend, OATs started to sell off in late

afternoon trading on Tuesday and continued through to Wednesday. A slew of

better than expected European data (German unemployment claims, Spanish/Italian

manf. PMIs) and fresh speculation over a possible coronavirus vaccine have been

contributing factors. While France will be this week's biggest EGB issuer this

week, additional supply at around the same time from Spain (E5.75bn-7.25bn) will

give plenty for the market to digest. There are no France-specific or Tier-1

Euro Area data ahead of the Thursday auction to serve as a potential catalyst.

- TIMING: Results are due out around 0950BST.