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Relatively weak LT OAT auction

FRANCE AUCTION PREVIEW
  • From a price perspective the French LT OAT auction looked good, but the bid-to-covers were a bit disappointing.
  • Also, rather than issuing at the top of the target range (as is usual for France), only E10.747bln was sold - the middle of the E10.0-11.5bln target range.
  • After moving higher immediately after the auction cutoff time, the publication of the results saw the OATs sold today reverse these gains and at the time of writing trade below the prevailing mid-prices.

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