The Agence France Tresor.....>

FRANCE AUCTION PREVIEW: The Agence France Tresor taps off-the-run OAT 6% Oct-25,

10-year benchmark OAT 1% May-27 and 30-year benchmark OAT 2% May-48 issues

Thursday for an indicative size of between E5.5bln-E6.5bln.

- BACKGROUND: The AFT has so far sold E142.2bln worth of medium-/long term debt

vs official target of E185bln (net of buybacks) and gross supply estimate of

E212bln.  Moreover, demand is seen underpinned by recent redemption payment by

France for E36.36bln on July 25. Moreover, today's auction is small for a long

maturity sale but in line with an August issuance size.

- RV: The OAT 6% Oct-25 is an old 30-year issue and trades at 0.388% mid-yield

but special in repo. This issue was last sold in May 2016 - therefore not

comparable. The OAT 1% May-27 trades at 0.758% mid-yield or a spread of 33bps vs

10Y Bund. This issue was last sold on July 6 for E3.79bln at avg yield 0.82%,

cover 1.95. The OAT 2% May-48 trades at 1.794% mid-yield and the recent

flattening in 10-/30Y yield spread implies richening vs 10-year part of the

curve and was last sold on July 6 for E2.285bln at avg yield 1.87%, cover 1.53. 

- RESULTS: Nominal Bidding closes at 0850GMT. Results due around 0900GMT.