France sells E6.5-7.5bln.....>

FRANCE AUCTION PREVIEW: France sells E6.5-7.5bln of nominal bonds and

E1.0-1.5bln of linkers on Thursday. On offer are the 0.00% Feb-21 OAT, 0.00%

Mar-24 OAT, 0.50% May-26 OAT, 0.10% Mar-28 OATei, 0.70% Jul-30 OATei and the

0.10% Jul-36 OATei.

- RV/HISTORY: French yields have pushed higher across the curve since the

beginning of the month. The 2-year trades at -0.354% up from -0.430% at the

beginning of September, while the 10-year is up to 0.798% from 0.693%. The curve

has also steepened with the 2s10s spread pushing up to 114.9bps from 111.9bps.

The 0.00% Feb-21 OAT trades 30.3bps inside the comparable EUR swap, while the

0.00% Mar-24 OAT trades 28.2bps inside and the 0.50% May-26 OAT 27.4bps inside.

- REDEMPTIONS: There are E15.8bln in EGB redemptions this week which may support

the auction.

- TIMING: OAT auction results are due around 0850GMT and linkers around one hour

afterwards.