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Index-linked OATs

FRANCE AUCTION PREVIEW
MNI (London)
  • On offer today: E1.0-1.5bln of I/L OATs
    • 0.10% Mar-28 OATi (ISIN: FR0013238268)
    • 0.10% Jul-31 OATei (ISIN: FR0014001N38)
    • 0.10% Jul-53 OATei (ISIN: FR0014008181)
  • Market colour: 0.10% Mar-28 OATi yields rose over 140bp from the beginning of May to June 20 highs and have since decreased around 37bp to around -1.015%. 0.10% Jul-31 OATei yields followed a similar trajectory, rising over 150bp from the beginning of May. Yields were around -0.550% at the time of writing (approx. 72bp off June 20 highs).
  • 30-year OATei yields increased around 124bp from the beginning of May to the June 21 high of 0.521% and were back around 0.071% at the time of writing.
  • 6/10-year OATei breakevens rose 126bp and 117bp to May 6/April 29 highs of approx. 258.3bp and 300.58bp. Breakevens have since fallen back to 172.3bp and 225.7bp respectively.
  • 0.10% Jul-53 OATei breakevens to the OAT increased around 82bp from the beginning of the year to the April 29 high of 273.1bp and were back around 233.1bp at the time of writing.
  • Timing: Results will be available shortly after the auction closes at 1050 BST / 1150 CEST.

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