By Emese Bartha

The French treasury agency sold its maximum targeted 9.5 billion euros ($9.9 billion) in four long- and ultra-long government bonds at its first auction of 2017 on Thursday.

Borrowing costs moved higher from previous sales, driven by rising inflation and expectations of inflation in the eurozone--likely exacerbated somewhat by a significant supply of debt.

The agency had planned to sell EUR 8.5 billion to EUR9.5 billion across the four OATs. They were existing issues that had been reopened.

The following are details of the auction, with amounts in euros. Figures in brackets are data from the previous auctions held Nov. 3 for the 2026- and 2036-dated OATs, Sept. 1 for the 2045-dated OAT and Oct. 6 for the 2066-dated OAT.

Issue nine-year OAT

Maturity Nov. 25, 2026

Coupon 0.25%

Bids received 8.495 bln

Bids accepted 4.175 bln

Bid-to-cover ratio 2.03 (1.99)

Average yield 0.78% (0.46%)

Average price 94.94 (97.96)

Minimum price 94.89 (97.92)

Settlement day Jan. 9, 2017

Issue 19-year OAT

Maturity May 25, 2036

Coupon 1.25%

Bids received 4.400 bln

Bids accepted 2.198 bln

Bid-to-cover ratio 2.00 (2.31)

Average yield 1.49% (1.05%)

Average price 96.01 (103.45)

Minimum price 95.95 (103.42)

Settlement day Jan. 9, 2017

Issue 28-year OAT

Maturity May 25, 2045

Coupon 3.25%

Bids received 3.913 bln

Bids accepted 2.024 bln

Bid-to-cover ratio 1.93 (1.55)Average yield 1.76% (1.01%)

Average price 133.02 (155.62)

Minimum price 132.85 (155.56)

Settlement day Jan. 9, 2017

Issue 49-year OAT

Maturity May 25, 2066

Coupon 1.75%

Bids received 2.049 bln

Bids accepted 1.102 bln

Bid-to-cover ratio 1.86 (2.20)

Average yield 2.02% (1.43%)

Average price 91.63 (111.14)

Minimum price 91.40 (111.00)

Settlement day Jan. 9, 2017

-Write to Emese Bartha at emese.bartha@wsj.com

(END) Dow Jones Newswires

January 05, 2017 05:34 ET (10:34 GMT)

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