France will sell a...........>

FRANCE AUCTION PREVIEW: France will sell a combination of nominal OATs and

linkers on Thursday for E10-12bn. 

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

bid-to-cover): 0.0% Mar-24 OAT (), 0.0% Feb-26 OAT (16 Apr 2020, E2.04bn,

-0.36%, 2.36x), 3.50% Apr-26 OAT (16 Apr-2020, E2.32bn, -0.17%, 2.71x), 2.75%

Oct-27 OAT (19 Mar 2020, E1.86bn, -0.05%, 1.28x), 0.10% Mar-26 OATEi (18 Jun

2020, E2.43bn, -0.80%, 2.62s), 0.10% Mar-29 OATEi (16 Apr 2020, E0.63bn, -0.54%,

3.15x), 0.10% Jul-47 OATEi (16 Apr 2020, E0.2bn, -0.32%, 2.19x).

- RV/HISTORY. The OAT curve has continued to bull flatten through the first half

of July, extending the June rally. Spreads over bunds have also narrowed with

the 10-year OAT-Bund spread trading down to 31bp from 34bp at the beginning of

the month. With the ECB not expected to alter monetary policy at the Thursday

meeting, market appetite for EGBs will be tested again as France and Spain seek

to place a combined E15-18bn.

- TIMING: Nominal OAT results are due out around 0950BST and linkers an hour

later.