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France sells 3 OATS for......>

FRANCE AUCTION PREVIEW
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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