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2025-09-18 16:58:03
[Massive Debt Auction Stirs Up Another Round! French Government Bond Market Draws Attention] ⑴ The French Ministry of Finance held a government bond auction on Thursday, selling a total of 11.428 billion euros in medium- and long-term bonds. The auction featured a diverse range of bonds, including four tranches maturing in May 2028, September 2028, February 2031, and November 2033. The February 2031 tranche saw the highest sales, reaching 4.428 billion euros, while the November 2033 tranche saw sales of 2.096 billion euros, the September 2028 tranche saw 2.871 billion euros, and the May 2028 tranche saw 2.105 billion euros. ⑵ The bid-to-cover ratios for all bonds in the auction were robust, demonstrating strong market demand for French government bonds. The September 2028 tranche had the highest bid-to-cover ratio, reaching 4.015, followed by the November 2033 tranche at 3.914. The bid-to-cover ratios for bonds maturing in May 2028 and February 2031 were 3.561 and 2.837, respectively. (3) In terms of average yields, the bonds auctioned this time generally had yields higher or similar to those in previous similar auctions. For example, the average yield on bonds maturing in February 2031 was 2.79%, higher than the 2.77% in the August 21st auction. The average yield on bonds maturing in November 2033 was 3.22%, higher than the 3.19% in the April 3rd auction. The average yield on bonds maturing in September 2028 was 2.34%, also slightly higher than the 2.31% in the August 21st auction. These data indicate that, in the current market environment, the French government needs to offer higher returns to attract investors to subscribe to its debt.
