France sells E7-8bln of......>

FRANCE AUCTION PREVIEW: France sells E7-8bln of nominal bonds and E1.25-1.75bln

of linkers Thursday, including three BTPs - 0.00% Feb-21, 0.00% Mar-24, and

1.00% Nov-25 - and three OATei: 0.10% Mar-21, 1.85% Jul-27, and 0.10% Jul-47.

- RV/HISTORY: At the last time they were auctioned on Sep 20, the 2-Yr benchmark

Feb-21 sold at -0.37% yield and 3.2x cover, the 5-Yr Mar-24 sold at 0.14% yield

and 2.2x cover. The nominal curve has steepened over the past month, with the

short-end and rallying and the belly/10-Yr+ segments selling off amid global

bond weakness. The 7-Yr Nov-25 yield is up 4bps at 0.391% over the past month,

though off highs of 0.47% seen earlier in October before global risk aversion

came into play. Over the past month, the OATei curve has likewise steepened,

with real yields on the 3-Yr Mar-21 falling by 19.5bps to -1.847%, 10-Yr Jul-27

rising by 0.8bps to -0.875%, and the 30-Yr Jul-47 rising by 2.5bps to -0.114%.

- REDEMPTIONS: No major cash flow expected on the French market this week,

though there are more than E40bln in French redemptions + coupons next week.

- TIMING: OAT auction results are due around 0850GMT, with Linker results around

one hour later.