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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: France's Agence France Tresor (AFT) issue new
3-month May 3, 2018 BTF for E2.3-E2.7bln, tap 6-month Jul 4, 2018 BTF for
E1.1-E1.5bln and tap 12-month Jan 04, 2018 BTF for E0.9-E1.3bln on Monday
- RV: The belly of the BTF curve has outperformed the wings since the last
auction on Jan 22 with the 3-month part of the yield curve around 2bp higher and
the 12-month little changed, while the 6-month is around 0.5bp lower.
- REDEMPTION: There will a BTF redemption of E7.467bln this week which leaves
net cash flow negative to the tune of E1.967ln which is seen supporting demand
at the auction.
- HISTORY: At Jan 22 auction the AFT allotted E3.294bln 3-month BTF at an
average yield of -0.589% with cover of 1.98 times, allotted E1.495bln 6-month
BTF at an average yield of -0.576% with cover of 3.7 times and allotted
E1.197bln 12-month at average yield -0.568% and cover of 3.82 times. 
- TIMING: Results due to be announced at around 1355GMT.

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