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Free AccessFrance sells 3 OATS for......>
FRANCE AUCTION PREVIEW: France sells 3 OATS for E7.5-E8.0bn and 3 linkers for
E1.5-E2.0bln indicative size on Thursday. On offer are the new 0.00% Mar-24 OAT
and taps of the 0.00% Feb-21 OAT and 3.0% Apr-22 OAT, as well the 1.85% Jul-27
OATei, 0.00% Mar-28 OATei and 0.10% Jul-47 OATei.
- BACKGROUND: France is significantly ahead of target in terms of issuance with
a successful auction tomorrow taking the total for the year to 65% of planned.
- RV/HISTORY: French government bond yields have drifted lower over the past
month, with the benchmark 2-year OAT yield sliding to -0.570% from -0.482% on
May 30. There has been a particularly aggressive move in the 10-year OAT, with
the yield dropping to 0.708% from 0.904% on June 11. On Spread to Germany the
10-yr is currently at 32.5bps roughly in the middle of 2-month range of 22bp to
41bps. For the specific issues being re-opened, the 0.00% Feb-21 trades 38.9bps
inside the comparable EUR swap, while the 3.0% Apr-22 trades 45.5bps inside.
- TIMING: OAT auction results are due around 0855GMT while the linkers are out
an hour later.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.