France Draws €135 Billion in Orders for New 33-Year Bond

The transaction attracted an order book of more than €135 billion, according to lead manager banks. This figure includes €2.45 billion in interest from the joint lead managers themselves. The overwhelming demand allowed the French Treasury to price the debt at a yield of 4.439%, with a coupon set at 4.40%. The bond was priced at 99.329, representing a spread of 4 basis points over the existing May 2056 OAT.

Market Context and Strategy

This sale marks a significant moment for France's borrowing strategy in a year characterized by high-volume syndicated issuances. On January 14, the country successfully launched a 22-year bond maturing in May 2046, which drew over €106 billion in bids for a €10 billion issuance. The escalating interest for the 2057 maturity suggests that institutional investors are increasingly looking to lock in higher yields amid shifting expectations for long-term interest rates.

A consortium of five major financial institutions managed the transaction:

• BNP Paribas
• Credit Agricole CIB
• J.P. Morgan
• Morgan Stanley
• Societe Generale