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FRANCE T-BILL AUCTION PREVIEW
FRANCE T-BILL AUCTION PREVIEW: France's Agence France Tresor (AFT) issue new
3-month Nov 14, 2018 BTF for E2.3-E2.7bln, tap 6-month Jan 17, 2019 BTF for
E1.1-E1.5bln and tap 12-month Jul 17, 2019 BTF for E0.6-E1.0bln on Monday
- RV: The BTF curve has pivoted slightly since last weeks auction, as the
3-month part of the yield curve is little changed, while the 6-month yield has
fallen circa 3bps, while the 12-month BTF is in the region of 0.5bp lower. There
appears very strong demand for French BTF paper majoring in January and this is
likely to continue despite low BTF redemption this week.
- REDEMPTION: There will a BTF redemption of E4.089bln this week which leaves
net cash flow positive to the tune of E1.111bln which is seen weighing on demand
at the auction.
- HISTORY: At Aug 6 auction the AFT allotted E2.7bln 3-month BTF at an average
yield of -0.540% with cover of 2.23 times, allotted E1.094bln 6-month BTF at an
average yield of -0.596% with cover of 4.09 times and allotted E998mln 12-month
at average yield -0.545% and cover of 3.54 times. 
- TIMING: Results due to be announced at around 1255GMT.

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