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Bearish Cycle Still In Play

France on Thursday sells.....>

FRANCE AUCTION PREVIEW
FRANCE AUCTION PREVIEW: France on Thursday sells both nominal and linker OATs.
- HISTORY: On Thursday morning, AFT sells between E7.5-9.0bln combined of 0.00%
Feb-22 OAT (last sold May 16th: -0.52% yld, 3.56x cover), 0.00% Mar-23 OAT (last
sold Nov 2018), and 0.00% Mar-25 OAT (May 16th: -0.19% yld, 2.10x cover). 
- An hour later, AFT sells between E0.75-1.25bln of linkers: 0.25% Jul-24 OATei
(last sold Jan 24th), 0.70% Jul-30 OATei (last sold Nov 2018), and 0.10% Jul-47
OATei (Apr 18th: -0.13% yld, 2.74x cover).
- No OATi linkers will be sold this month.
- BACKGROUND/RV: European yields collapsed following ECB Pres Draghi's dovish
comments on Tuesday which included suggestions that the 33% issuer limit could
be raised. French linker real yields fell and breakeven implied inflation moved
sharply higher post-Draghi comments, with the 2030 real yield hit an all-time
low of -0.839%, with breakevens rising from 85bps to 95bps as nominal yields
fell.
- TIMING: OAT results are due around 0950BST, linker results an hour later.