France sells EUR 12.495bln vs exp. EUR 10.5-12.5bln 1.25% 2036, 3.70% 2036, 3.80% 2037 & 0.50% 2044 OAT

• 1.25% 2036: b/c 3.74x (prev. 3.31x) & average yield 3.86% (prev. 3.68%)
• 3.70% 2036: b/c 3.33x (prev. 2.38x) & average yield 3.90% (prev. 3.73%)
• 3.80% 2037: b/c 2.62x & average yield 3.95%
• 0.50% 2044: b/c 2.78x (prev. 2.45x) & average yield 4.37% (prev. 4.24%)

A top-of-range French auction with firming bid-to-covers across all four lines fits the pattern of OAT supply being comfortably absorbed when the concession is in place, with demand concentrated at the intermediates and the long bond still clearing despite the longest duration on offer. The upward drift in average yields versus the previous comparable auctions reflects the carry-through of the broader rate move rather than any deterioration in demand, since cover ratios improved alongside the higher clearing levels. The distinction that matters in French supply episodes is between the routine pass-through of Bund-led levels and genuine OAT-specific stress, which historically has shown up in weak covers, tails, and a widening spread to Germany rather than in headline size. None of that signature is present here. What tends to follow is the spread behaviour around the settlement and the next scheduled supply, with the OAT-Bund differential rather than the absolute yield the cleaner read on France-specific risk premia, particularly given the recurring sensitivity of that spread to domestic fiscal and political headlines. As a data point on demand for eurozone sovereign duration, the result is unremarkable in the constructive sense.