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France will tap the market...>

FRANCE AUCTION PREVIEW
FRANCE AUCTION PREVIEW: France will tap the market for E8.0-9.0bln on Thursday.
On offer are the 0.75% Nov-28 OAT, the 1.25% May-34 OAT and the 2.00% May-48
OAT.
- BACKGROUND: France is on target for issuance this year with 87% of the planned
2018 total already met.
- RV/HISTORY: French OATs have sold off since the beginning of September and the
curve has steepened on the back of the longer end underperforming. At the last
auction of these issues, the Agence France Tresor allotted E3.36bln of the 0.75%
Nov-28 OAT at an average yield of 0.71% and bid-to-cover of 1.95, E1.38bln of
the 1.25% May-34 OAT at an average yield of 1.11% and cover ratio of 1.60x, and
E1.85bln of the 2.00% May-48 OAT at an average yield of 1.65% and cover ratio of
1.35x. Relative to the comparable EUR swap, the 0.75% Nov-28 OAT trades 20.3bps
inside, the 1.25% May-34 trades at 17.2bp inside and the 2.00% May-48 OAT
12.5bps inside.
- TIMING: Results are due shortly after the auction closes at 0850GMT

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