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France taps 3 OATs...........>

FRANCE AUCTION PREVIEW
FRANCE AUCTION PREVIEW: France taps 3 OATs Thursday for between E7.5-E8.5bln
indicative size. On offer are OAT 0.75% May-28, OAT 1.5% May-31 and OAT 2.0%
May-48.
- BACKGROUND: Although, the pace of French growth slowed marginally in the third
quarter it still expanded at 0.5% Q/Q. French HICP increased slightly in
September from August. It appears that the French economy is steadily growing
with inflation also climbing.
- RV/History: Mid yield on the OAT 0.75% May-28 is currently seen at 0.758%,
having rallied from 0.902% on 25th Oct approximately 14.4bp. The OAT 1.5% May-31
is currently seen at 1.014%, which is approximately 49bp lower from 25th of
October. And finally the OAT 2.0% May-48 is currently seen at 1.015% after
having rallied approximately 14bp since the 25th of October. The average cover
over the last six auctions is 1.94x, 1.97x and for the OAT May-48 the last cover
was 1.57x.
- RESULTS: Auction bidding closes at 0950GMT with results expected around
1000GMT.

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