France sells EUR 12.994bln vs exp. EUR 11-13.0bln 2.40% 2029, 2.70% 2031, 0.00% 2032 and 3.00% 2033 OAT

France's auction of EUR 12.994 billion in OATs appears robust, exceeding expectations, particularly with the 2031 and 2033 maturities showing improved bid-to-cover ratios.

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France sells EUR 12.994bln vs exp. EUR 11-13.0bln 2.40% 2029, 2.70% 2031, 0.00% 2032 and 3.00% 2033 OAT

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  • 2.40% 2029: b/c 1.66x (prev. 1.92x) & average yield 2.884% (prev. 2.86%)
  • 2.70% 2031: b/c 2.35x (prev. 1.87x) & average yield 3.03% (prev. 3.04%)
  • 0.00% 2032: b/c 2.92x & average yield 3.21%
  • 3.00% 2033: b/c 2.82x & average yield 3.24%
Context

While demand for the 2029 bond did drop slightly relative to the previous auction, yields remain competitive, suggesting that investor appetite for French debt is still solid. This could signal continued confidence in eurozone fixed income, impacting rates and risk sentiment across the broader market.

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