France sells EUR 13.5bln vs exp. EUR 11.5-13.5bln 3.50% 2035, 0.50% 2040, 3.60% 2042 & 3.75% 2056 OAT

• 3.50% 2035: b/c 1.98x (prev. 2.147x) & average yield 3.53% (prev. 3.43%)
• 0.50% 2040: b/c 2.37x (prev. 2.272x) & average yield 3.95% (prev. 3.898%)
• 3.60% 2042: b/c 2.12x (prev. 2.922x) & average yield 4.05% (prev. 3.92%)
• 3.75% 2056: b/c 3.4x & average yield 4.46%

France's recent bond auction raised EUR 13.5 billion, exceeding expectations within the EUR 11.5-13.5 billion range, with varying demand metrics across maturities. The bid-to-cover ratios indicate weaker demand compared to previous auctions, particularly for the shorter maturities, while yields have generally increased, suggesting a potential shift in investor sentiment toward higher rates and market caution. This could influence the broader French yield curve and investor appetite in the fixed income space.