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France will come to market...>

FRANCE AUCTION PREVIEW
FRANCE AUCTION PREVIEW: France will come to market on Wednesday for a tap of
E8.5-10.0bn. On offer are the 0.00% Feb-23 OAT, 1.75% May-23 OAT, 1.00% Nov-25
OAT and the 0.00% Feb-26 OAT.
- BACKGROUND: Previous auction results (date, volume, average yield,
bid-to-cover): 0.00% Feb-23 OAT (20 Feb 2020, E3.3bn, -0.59%, 2.30x), 1.75%
May-23 OAT (19 Sep 2019, E3.6bn, -0.66%, 1.66x), 1.00% Nov-25 OAT (21 Mar 2019,
E1.7bn, -0.02%, 2.88x) and the 0.00% Feb-26 OAT (16 Apr 2020, E3.8bn, -0.16%,
2.60x).
- RV/HISTORY: The joint Macron-Merkel press conference on Monday overturned what
was an uneventful start to the week. Although uncertainty remains around the
structure of the proposed E500bn recovery fund and whether the EU27 will support
it, to the extent that it marked an improvement in policy coordination  between
France and Germany, the announcement has been positively received by markets.
OATs rallied on the news, with cash yields 2-4bp lower across the curve at the
time of writing on Tuesday.
- TIMING: Results are due out after the auction closes to 0950BST.

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