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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: France's Agence France Tresor (AFT) tap 3-month
Oct 31, 2018 BTF for E2.3-E2.7bln, issue new 6-month Jan 16, 2018 BTF for
E0.7-E1.1bln and tap 12-month Jul 17, 2019 BTF for E0.6-E1bln on Monday
- RV: The BTF curve has flattened slightly since last weeks auction, as both the
3-month and 6-month part of the curve are little changed, however the 12-month
BTF 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 E6.35bln this week which leaves net
cash flow negative to the tune of E1.55bln which is seen underpinning demand at
the auction.
- HISTORY: At Jul 30 auction the AFT allotted E2.796bln 3-month BTF at an
average yield of -0.534% with cover of 2.43 times, allotted E998mln 6-month BTF
at an average yield of -0.532% with cover of 4.18 times and allotted E998mln
12-month at average yield -0.540% and cover of 3.43 times. 
- TIMING: Results due to be announced at around 1255GMT.

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