French Auction Fails To Sell Max Projected As Bid-To-Cover Plunges

Tyler Durden's picture

French 10Y bond spreads had widened almost 50% (from 100bps to 149bps) in the last week of trading ahead of this critical auction and the EURUSD is over 200pips lower. The auction results are in and it is not a total disaster but the bid-to-cover dropped significantly to its lowest since October 2010 and they missed their maximum target.

*FRANCE SELLS TOTAL EU7.963B VS MAX TARGET EU8B OF BONDS

*FRANCE SELLS EUR4.02 BLN 3.25% 2021 BONDS; YLD 3.29%

*FRANCE SELLS EUR690 MLN 4.25% 2023 BONDS; YLD 3.5%

*FRANCE SELLS EUR1.088 BLN 4.75% 2035 BONDS; YLD 3.96%

*FRANCE SELLS EUR2.165 BLN 4.5% 2041 BONDS; YLD 3.97%

*FRANCE SELLS 2021 BONDS AT AVE. YIELD 3.29% VS 3.18% DEC. 1

*FRANCE 2041 BOND BID-TO-COVER 1.82 VS 2.26 AT DEC. 1 SALE

*FRANCE 2021 BOND BID-TO-COVER 1.64 VS 3.05 AT DEC. 1 SALE

EURUSD is leaking a little lower and 10Y French spreads are widening modestly but the initial reaction is unimpressive for now.

French Auction results:

French 10Y auction Bid-to-Cover:

French 10Y Bond spreads:

EURUSD is moving down to new lows of the day now:

 

Charts: Bloomberg