France on Thursday...........>

FRANCE AUCTION PREVIEW: France on Thursday re-opens 10-/15-/30Yr OATs for a

combined E8.5-10.0bln: 0.50% May-29 OAT, 1.25% May-34 OAT, and 1.50% May-50 OAT.

- HISTORY: The 10- and 30- Yr benchmarks were last re-opened on June 6: the

May-29 at 0.14% yield and 2.57x cover; the May-50 at 1.16% yield and 1.63x

cover. the 15- Yr  was last re-opened on May 2, at 0.78% yield and 2.3x cover.

- BACKGROUND/RV: We are in uncharted territory across the French curve, with all

3 OATs on offer achieving record-low yields earlier this week and negative

yields through 10-Yr. Per Tradeweb data, the 10-Yr yields -0.107%, 15-Yr yields

0.255%, and 30-Yr yields 0.820%. The theme since ECB Pres Draghi`s Jun 18 Sintra

speech (accelerating with Lagarde`s appointment as his successor) has been curve

flattening led by the long-end: 30-Yr yld has fallen by 25.5bps since then,

3.9bps more than the 10-Yr and 2.2bps more than the 15bps. Spreads have come

down too: 30-Yr OAT/Buxl is at lowest since Nov 2018 at 61bps. Notably, OATs

have become sharply cheaper vs swaps: equiv EUR swap vs 30-Yr has come down from

a 2-yr wide of 36bps in May to 19bps (lowest since Nov 2018). Too far, too fast?

- TIMING: Results should be out at around 0950UK time.