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France taps 3 nominal OATs...>

FRANCE AUCTION PREVIEW
FRANCE AUCTION PREVIEW: France taps 3 nominal OATs Thursday for a fairly modest
E4.0-E5.0bln indicative size. On offer are OAT 3.50% Apr-20, OAT 0% Mar-23 and
OAT 0.5% May-25. 
- BACKGROUND: There are no coupon or redemption payments to help but this is a
very small auction by French standards and should go well for this reason. The
ECB has been over-buying French bonds relative to the capital key but French
banks have been selling aggressively. 
- RV: French bonds in the 2020 to 2025 area have done well versus the swap curve
and spreads to Germany have tightened. French debt tends to look cheap to
Netherlands and Germany in the 8Y+ sector of the curves; a divergence of credit
curves can be seen beyond that point. The front end of the curve looks less
enticing.
- RESULTS: Nominal bidding closes at 1050GMT. Results are due around 1100GMT

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