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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: France's Agence France Tresor (AFT) tap 3-month
Oct 17, 2018 BTF for E2.5-E2.9bln, tap 6-month Dec 19, 2018 BTF for E0.5-E0.9bln
and issue a new 12-month Jul 17, 2019 BTF for E0.6-E1bln on Monday
- RV: The BTF curve is a touch flatter since last week auction, as the 3-month
part of the curve falls by around 0.5bps while the 6-month and 12-month are in
the region of 1.5bp lower. French government paper remains in good demand and
still offer a good yield pick-up versus Bubills and DTCs.
- REDEMPTION: There will a BTF redemption of E7,191bln this week which leaves
net cash flow negative to the tune of E2.391bln which is seen underpinning
demand at the auction.
- HISTORY: At Jul 16 auction the AFT allotted E3.294bln 3-month BTF at an
average yield of -0.575% with cover of 2.23 times, allotted E1.096bln 6-month
BTF at an average yield of -0.567% with cover of 2.97 times and allotted E995mln
12-month at average yield -0.563% and cover of 3.89 times. 
- TIMING: Results due to be announced at around 1255GMT.

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