New 10y OAT, 20/30y OATS

France will come to the market today to sell E10-11bln of long-term OATs via auction: the new 10-year OAT and the 20/30-year OATS.

• On offer will be:
  • 0% May-32 OAT. ISIN: TBA.
  • 0.50% May-40 OAT. ISIN: FR0013515806.
  • 0.75% May-53 OAT. ISIN: FR0014004J31.
• Auction history: The new 0% May-32 OAT will replace the 0% Nov-31 as the on-the-run 10-year OAT. The launch auction of the 0% Nov-31 on April 8, 2021 saw E6.57bln issued with an average yield of 0.000% and a bid-to-cover of 1.65x. The 10-year OAT was reopened six times last year and the last two auctions were on November 4 and October 7. The November reopening saw E6.25bln issued, resulting in a 0.160% yield and 1.86x bid-to-cover. The auction in October issued a smaller nominal of E4.93bln at a yield of 0.150% and a higher bid-to-cover of 2.12x.
• The 0.50% May-40 OAT was launched via syndication in May 2020 for E7bln and has since been reopened five times, four of which were in 2021. Auction sizes of the reopenings were considerably smaller, with the most recent two auctions issuing E2.0bln and E1.8bln in July and May last year. The July 1 auction had an average yield of 0.620% and a bid-to-cover of 2.33x, whilst the May 6 auction saw an identical yield of 0.620% but a higher bid-to-cover of 2.51x.
• France launched E5bln of the 0.75% May-53 OAT via syndication on July 6, 2021. The OAT has since been reopened twice. The October 7 reopening issued E2.04bln resulting in a yield of 0.960% and bid-to-cover of 2.14x. The November 4 auction saw smaller nominal of E1.66bln issued at a yield of 0.830% and bid-to-cover of 2.56x.
• Timing: Results are due shortly after the auction closes at 09:50 GMT / 10:50 CET.