On Thursday, France sells....>

FRANCE AUCTION PREVIEW: On Thursday, France sells three nominal OATs for a

combined total of between E7.5-9.0bln: 0.50% May-29 OAT, 1.25% May-34 OAT, and

1.50% May-50 OAT.

- HISTORY: The May-29 is the benchmark 10-Yr OAT, and was last sold on Mar 7 at

average yield 0.57% and bid-to-cover of cover of 1.88x. The 15-Yr May-34 was

also sold Mar 7, on a yield of 0.99% and cover of 1.94x. This will be the first

re-opening of the May-50, which was launched via syndication in February.

- RV: Since the Mar 7 auction of 10s and 15s, the curve has bull flattened, with

most gains in the 15-20Yr segment (10-12bps). The 10-Yr and 30-Yr segments have

lagged (yields down down 8.5bps). OATs have cheapened versus Bunds overall, with

the latter rallying amid concerns over the European growth trajectory. The 10-Yr

OAT/Bund spread has widened by around 4bps to 39bps over the past month.

Notably, a concurrent Spain 10-Year sale Thursday morning (results around

0945BST) could potentially weigh from a supply perspective.

- TIMING: Results are expected around 0950BST.