France will come to market...>

FRANCE AUCTION PREVIEW: France will come to market on Thursday for a tap of

E9.5-11.0bn. On offer are the 2.50% May-30 OAT, 0.0% Nov-30 OAT and the 0.75%

May-52 OAT.

- BACKGROUND: Previous auction results (date, volume, average yield,

bid-to-cover): 2.50% May-30 OAT (1 Aug 2019, E2.13bn, -0.10%, 2.52x), 0.75%

May-52 OAT (7 May 2020, E1.39bn, 0.82%, 2.96x). The 0.0% Nov-30 OAT is a new

issue.

- RV/HISTORY: The OAT curve has bear steepened this week, potentially reflecting

France's gradual emergence from lockdown and expectation of additional OAT

supply to finance the legacy costs of the coronavirus crisis (in terms of lost

output, higher unemployment and a wider fiscal deficit). Demand for OATs and

BTFs has been robust at recent auctions and strong demand for Italy's syndicated

10-year BTP on Wednesday bodes well heading into Thursday's OAT auction. The

expectation that the ECB will raise the PEPP at this week's meeting will be a

further supportive factor.

- TIMING: Results are due after the auction closes at 0950BST.