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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: France's Agence France Tresor (AFT) issue new
3-month Oct 31, 2018 BTF for E2.4-E2.8bln, tap 6-month Dec 19, 2018 BTF for
E0.6-E1.0bln and tap 12-month Jul 17, 2019 BTF for E0.6-E1bln on Monday
- RV: The BTF curve has pivoted around the 6-month area since last weeks
auction, as the 3-month part of the curve falls by around 1.5bps while the
6-month is unchanged while the 12-month is in the region of 0.5bp 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 E7,636bln this week which leaves
net cash flow negative to the tune of E2.836bln which is seen underpinning
demand at the auction.
- HISTORY: At Jul 23 auction the AFT allotted E2.893bln 3-month BTF at an
average yield of -0.563% with cover of 2.13 times, allotted E895mln 6-month BTF
at an average yield of -0.554% with cover of 4.11 times and allotted E996mln
12-month at average yield -0.558% and cover of 4.0 times. 
- TIMING: Results due to be announced at around 1255GMT.

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