On Thursday the Agence.......>

FRANCE AUCTION PREVIEW: On Thursday the Agence France Tresor comes to market for

a combined E8.0-9.0bln. On offer are the reopened 0.75% Nov-28, 2.50% May-30,

and 1.75% Jun-39 OATs. 

- HISTORY: For comparative purposes, the last auction of the above bonds are

listed below. 

0.75% Nov-28: average yield 0.68%, cover 1.71x, auction on Jan 1 2019.

2.50% May-30: average yield 0.92%, cover 2.05x, auction on Nov 8 2018.

1.75% Jun-39: average yield 1.34%, cover 1.76x, auction on Apr 5 2018.

- BACKGROUND: The bonds being auctioned have underperformed since November and

look good value Vs the comparable swaps. 

Yields at the long end of the curve have fallen around 30bps since their

November peak as recessionary pressures have swelled in the Eurozone, lead by

France and Italy. France's January composite PMI reading of 48.2 will do little

to quell fears, though that was revised upward from a flash reading of 47.9. 

The 10yr OAT currently trades at 0.577%, with the 20yr at 1.266%.   

- TIMING: Results will be due shortly after the auction closes at 0950GMT.