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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: France's Agence France Tresor (AFT) tap 3-month
Sep 12, 2018 BTF for E2.6-E3.0bln, issue a new 6-month Nov 21, 2018 BTF for
E0.6-E1.0bln and tap 12-month May 22, 2019 BTF for E0.6-E1.0bln on Monday
- RV: The long end of the BTF curve has outperformed the middle and long end
since the last auction on Jun 4, leading the curve to flatten slightly. The
3-month yield has fallen around 3bp and the 6-month part of the yield curve by
circa 2bp lower, while the 12-month part of the yield curve is in the region of
3.5bp lower.
- REDEMPTION: There will a BTF redemption of E8.24bln this week which leaves net
cash flow negative to the tune of E3.24bln which is seen underpinning demand at
the auction.
- HISTORY: At Jun 4 auction the AFT allotted E3.193bln 3-month BTF at an average
yield of -0.596% with cover of 2.36 times, allotted E1.299bln 6-month BTF at an
average yield of -0.595% with cover of 3.89 times and allotted E988mln 12-month
at average yield -0.565% and cover of 4.66 times. 
- TIMING: Results due to be announced at around 1255GMT.

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