France re-opens the 0.75%....>

FRANCE AUCTION PREVIEW: France re-opens the 0.75% Nov-28 OAT, 1.50% May-31 OAT

and 1.25% May-34 OAT for E7.0-E8.0bln on Thursday.

- BACKGROUND: Recent French auctions have been well covered, with a successful

auction tomorrow taking YTD issuance to 69% of target.

- RV/HISTORY: French OAT yields have fallen since the beginning of the year and

the curve has flattened, but political ructions across the Euro bloc has

triggered volatility. The 0.75% Nov-28 is the benchmark 10-year OAT and has

rallied sharply over the past month. The yield has edged down from 0.904% on

June 11 to 0.655% and trades 23.9bps inside the comparable EUR swap according to

Tradeweb. The 1.25% May-34 is the benchmark 15-year OAT and the yield has

similarly pushed decisively lower to 1.031% from 1.268% on June 11 and a 2018

high of 1.399% on Feb 20. The 1.50% May-31 trades at 0.851%, marking a new low

for the year. There are E21.0bn in EGB redemptions and E8.8bn in EGB coupon

payments which may provide some support.

- TIMING: OAT auction results are due around 0955GMT