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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: France's Agence France Tresor (AFT) tap 3-month
Jan 10, 2018 BTF for between E2.7-E3.1bln, tap 6-month Mar 14, 2017 BTF for
between E1.0-E1.4bln and issue a new 12-month Oct 10, 2018 BTF for between
E0.6-1.0bln on Monday.
- RV: The BTF curve is slightly flatter since last weeks auction with the
3-month part of the yield curve around 0.5bp lower, while the 6-month part of
the yield curve is around 1.5bp lower.
- REDEMPTION: There will be a redemption this week of E7.427bln, therefore could
leave net cash flow negative to the tune of E1.927bln which is seen underpinning
demand at the auction.
- HISTORY: For comparison at the Oct 9 auction the AFT allotted E3.916bln
3-month BTF at an average yield of -0.690% with cover of 2.57 times and allotted
sold E1.196bln 6-month BTF at an average yield of -0.614% with cover of 3.99
times. At the last 12-month BTF auction on Sep 25, the AFT allotted E897mln at
average yield -0.577% and covered 3.56 times.
- TIMING: Results due to be announced at around 1255GMT.

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