France will sell a mix of....>

FRANCE AUCTION PREVIEW: France will sell a mix of medium-term OATs and linkers

on Thursday. The AFT is looking to raise E7.5-9.0bln of the former and

E1.25-1.75bln of the latter.

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

bid-to-cover): 1.75% May-23 OAT (Apr 18, E1.29bln, -0.33%, 3.04x), 0.00% Mar-25

OAT (Jul 18, E2.78bln, -0.44%, 2.50x), 3.50% Apr-26 OAT (Dec 6, 2018, E1.05bln,

0.23%, 2.59x), 0.10% Mar-28 OATi (Dec 6, 2018, E0.32bln, -1.02%, 3.60x), 0.10%

Jul-36 OATEi (Dec 6, 2018, E0.39bln, -0.69%, 3.40x). 

- RV/HISTORY: Mirroring developments across EGBs, French OATs have sold off

since mid-August and the curve has bear steepened. More recently yields have

inched lower over the past week, but scope for further compression is likely

limited given that the market has already priced in a considerably weaker growth

and inflation profile. The Wednesday FOMC meeting could have some follow-through

to European markets on Thursday ahead of the auction.

- TIMING: OAT results are due out at 0950GMT, with linkers out an hour later.