Demand remains strong for French short-term debt auction, with winning yields rising across all terms

⑴ France auctioned approximately 3 billion euros of 13-week Treasury bills today, with a marginal winning yield of about 2.545%, a bid-to-cover ratio of roughly 4.36, and an average yield of approximately 2.54%, which is a slight increase from the previous roughly 2.533%. ⑵ The 26-week Treasury bill auction was about 1.6 billion euros, with a marginal yield of approximately 2.725%, a bid-to-cover ratio of about 5.18, and an average yield of around 2.72%, higher than the previous roughly 2.697%. ⑶ The 32-week Treasury bill auction was about 700 million euros, with a marginal yield of approximately 2.77%, a bid-to-cover ratio of about 5.08, and an average yield of about 2.768%. ⑷ The 52-week Treasury bill auction was about 1.79 billion euros, with a marginal yield of approximately 2.945%, a bid-to-cover ratio of roughly 3.94, and an average yield of about 2.94%, which is a clear increase from the previous approximately 2.86%. ⑸ For all durations, the bid-to-cover ratios remained above 3.9, with the 26-week and 32-week issues exceeding 5, indicating robust market demand. However, yields have risen across the board, reflecting a strengthened expectation in the market that short-term interest rates will remain high.