France EUR

France 28-Year Index-Linked OAT Auction

Info

History

Chart

Impact:

Low

Latest Release:

Date:

Actual:

1.73%

Forecast:

Previous/Revision:

1.68%

Period:

What Does It Measure?

The France 28-Year Index-Linked OAT Auction measures the government of France's issuance of long-term bonds that provide returns indexed to inflation. It focuses primarily on the country's debt management practices and investors' expectations of future inflation, thereby assessing the ability of the French government to finance its operations cost-effectively.

Frequency

This auction occurs periodically, typically on a quarterly basis, with release dates announced in advance by the French Treasury.

Why Do Traders Care?

Traders care about this auction because it signals the government's fiscal stance and impacts the pricing of long-term debt instruments. Higher demand for these bonds generally indicates confidence in the economy and inflation expectations, affecting the Euro and related financial markets.

What Is It Derived From?

The auction process derives its results from competitive bids made by institutional and retail investors, with the French Treasury calculating the final yield based on the bids submitted. The auction's success is assessed by the bid-to-cover ratio, reflecting the level of demand for the issue.

Description

The 28-Year Index-Linked OAT Auction provides insight into the state of France's long-term financing and market sentiment towards inflation risk. This bond issuance is significant as it showcases investor confidence in the French economy while also demonstrating how well the government can meet its financing requirements over an extended period.

Additional Notes

This auction serves as a leading economic indicator, signaling investors' expectations regarding inflation and emerging economic trends in France and the Eurozone. Additionally, in comparison to conventional government index-linked securities, the index-linked bonds tend to offer a hedge against inflation, making them particularly attractive during periods of rising price levels.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Actual	Previous
May 22, 2025	1.73%	1.68%
Apr 17, 2025	1.68%	1.57%
Mar 20, 2025	1.57%	1.35%
Jan 23, 2025	1.35%	1.1%