The Agence France Tresor.....>

FRANCE AUCTION PREVIEW: The Agence France Tresor will tap the market for

E7.5-9.0bln on Thursday. On offer are the 2.75% Oct-27 OAT, the 0.50% May-29

OAT, 1.25% May-36 OAT and the 1.50% May-50 OAT.

- BACKGROUND: The 2.75% Oct-27 OAT was last sold in July 2017 with E2.43bln sold

at an average yield of 0.85% and bid-to-cover ratio of 1.94x. The 0.50% May-29

OAT serves as the 10-year benchmark and was last tapped on May 2 with E3.96bln

sold at an average yield of 0.37% and bid-to-cover of 3.1x. The the 1.50% May-50

OAT is the 30-year benchmark with E9.43bln outstanding and was last re-opened on

April 2 with E1.86bln sold at an average yield of 1.46% and bid-to-cover of

1.94x.    

- RV/HISTORY: French OATs have been bid heading into this week's ECB meeting,

with yields dropping sharply since the beginning of May. The long-end of the

curve has outperformed as concerns about the growth outlook, the trajectory for

inflation and the intensification of global headwinds have collectively caused

the curve to flatten. 

- TIMING: Results are due after the auction closes at 0950BST.