France taps 3 longer.........>

FRANCE AUCTION PREVIEW: France taps 3 longer maturity, off-the-run lines today

for between E4-5bln indicative size: the OAT 0.25% Nov-26, OAT 5.5% Apr-29 and

OAT 1.75% Jun-39 (green bond). 

- BACKGROUND: These are three bonds that could be considered off-the-run bonds,

although the 22Y Green bond was first issued in January. The total size of

E4-5bln is only around two thirds of the normal size. Yesterday's 10Y Bund

auction was very poorly bid. There are no coupons or redemptions to help at this

fairly illiquid time of the year. 

- RV: The Apr-29 is a reference security for the 3.4% Jul-29 linker and the

Green OAT 1.75% Jun-39 could be a reference for the OATei Jul-40. Thus, demand

might be helped if breakevens are wide, which they are. the Green OAT 2039

trades a couple of bp more expensive to the French spline curve than other

securities in the sector. You pay up to show environmental credentials. The

Nov-26 was last issued in February when a large 4bln was sold with a 2.09x

cover. The Jun-39 was sold in Jun when the cover was a lowly 1.87x.

- RESULTS: Nominal Bidding closes at 0850GMT. Results due around 0900GMT.