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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: France's Agence France Tresor (AFT) tap 3-month
Sep 19, 2018 BTF for E2.6-E3.0bln, tap 6-month Nov 21, 2018 BTF for E0.6-E1.0bln
and issue new 12-month Jun 19, 2019 BTF for E0.6-E1.0bln on Monday
- RV: The long-end of the BTF curve has outperformed the short and middle since
the last auction on Jun 18, leading the curve to flatten slightly. The 3-month
and 6-month part of the yield curve has fallen around 0.5bp, while the 12-month
part of the yield curve is in the region of 1.5bp lower.
- REDEMPTION: There will a BTF redemption of E6.995bln this week which leaves
net cash flow negative to the tune of E1.995ln which is seen underpinning demand
at the auction.
- HISTORY: At Jun 18 auction the AFT allotted E2.996bln 3-month BTF at an
average yield of -0.603% with cover of 2.51 times, allotted E88mln 6-month BTF
at an average yield of -0.601% with cover of 7.32 times and allotted E750mln
12-month at average yield -0.591% and cover of 5.0 times. 

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