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France taps 3 nominal OATs...>

FRANCE AUCTION PREVIEW
FRANCE AUCTION PREVIEW: France taps 3 nominal OATs Thursday for between
E6.0-E7.0bln indicative size. On offer are OAT 0% May-21, a fairly new OAT 0%
Mar-23 and an off-the-run OAT 1.75% Nov-24, which was also sold last month. 
- BACKGROUND: On the 25th, there is a massive E34.4bln redemption and E14.9bln
coupon payments. Settlement for Thursday's auction is Oct 23rd.
- RV: The May-21 offers a generous 18.1bp (using ASW) of additional yield pick
up relative to an equivalent maturity Obl, which may tighten across the big
French cash flows. The spread between May-21 and Mar-23 is at its flattest since
the Mar-23 was issued last month and so provides little incentive to extend
maturity. French bonds in the 2023 to 2025 area have done very well versus the
swap curve. Overall, these factors may push demand into the front end on
Thursday.
- RESULTS: Nominal Bidding closes at 0850GMT. Results due around 0900GMT

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