20 JANUARY 2012

Two to 30-year T-bills, issued yesterday for a total € 9.8 billion with a settlement date set at next Tuesday, passed  the confidence test with investors following Standard and Poor's (S&P) sovereign credit rating downgrade to AA+ from triple A last week, as strong demand led to auctions being over subscribed, according to Agence France Trésor (AFT) data : 3-year BTAN with 2% coupon and maturing in July 2015 were issued for a total € 1.575 billion and oversubscribed three times. Two-year BTAN with 3% coupon and maturing in July 2014 had a bid/cover ratio of 3.2 for a total € 2.961 billion, and 4-year BTAN maturing in July 2016 with 2.50% coupon for € 3.429 billion were also oversubscribed more than twice. 

Ten-year T-bills, issued for € 0.425 billion with 1.10% coupon and maturing in July 2022 were over subscribed nearly four times and 30-year T-bills with 1.80% coupon maturing in July 2040 by over twofold for € 0.597 billion.  Four-year T-bills at 0.45% coupon and maturing in July 2016 met equal strong demand with € 0.841 billion issued.  On January 5th and prior to the downgrade, AFT had issued over € 7.9 billion bonds, equally oversubscribed.