{"id":58771,"date":"2026-02-19T07:08:24","date_gmt":"2026-02-19T11:08:24","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/france-debt-demand-surges-as-blue-owl-executes-1-4b-asset-sale\/58771\/"},"modified":"2026-02-19T07:08:24","modified_gmt":"2026-02-19T11:08:24","slug":"france-debt-demand-surges-as-blue-owl-executes-1-4b-asset-sale","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/france-debt-demand-surges-as-blue-owl-executes-1-4b-asset-sale\/58771\/","title":{"rendered":"France Debt Demand Surges as Blue Owl Executes $1.4B Asset Sale"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>France successfully auctioned \u20ac1.495 billion<\/strong> in inflation-linked bonds, with demand for long-dated 2040 maturities reaching a <strong>bid-to-cover ratio of 3.22x<\/strong>.<\/li>\n<li><strong>Blue Owl Capital (<a href=\"\/stock\/OWL\">OWL<\/a>)<\/strong> offloaded <strong>$1.4 billion<\/strong> in direct lending assets to institutional investors at <strong>99.7% of par value<\/strong>, aimed at returning capital to shareholders.<\/li>\n<li><strong>UK manufacturing orders<\/strong> improved slightly to <strong>-28 in February<\/strong>, matching estimates, but selling price expectations of <strong>26<\/strong> came in higher than the forecasted <strong>23<\/strong>.<\/li>\n<li><strong>The German government<\/strong> clarified that there are <strong>no current plans or decisions<\/strong> to purchase additional F-35 fighter jets from Lockheed Martin (<a href=\"\/stock\/LMT\">LMT<\/a>) beyond existing orders.<\/li>\n<\/ul>\n<h2>Strong Demand for French Inflation-Linked Debt<\/h2>\n<p>The <strong>Agence France Tr\u00e9sor (AFT)<\/strong> reported robust investor appetite during its latest auction of inflation-indexed government bonds (OATi\/OAT\u20aci) on Thursday. The treasury sold <strong>\u20ac300 million<\/strong> of its 1.8% 2040 bonds at an <strong>average yield of 1.64%<\/strong>, supported by a high <strong>bid-to-cover ratio of 3.22x<\/strong>, signaling strong institutional interest in long-term inflation protection.<\/p>\n<p>Further tranches included <strong>\u20ac525 million<\/strong> of 0.6% 2034 bonds at a <strong>1.18% yield<\/strong> and <strong>\u20ac670 million<\/strong> of 3.15% 2032 bonds at <strong>0.86%<\/strong>. <em>The consistently high bid-to-cover ratios across all maturities suggest that investors remain confident in French sovereign credit despite broader European economic uncertainties.<\/em><\/p>\n<h2>Blue Owl Capital Liquidity Move<\/h2>\n<p>Blue Owl Capital (<a href=\"\/stock\/OWL\">OWL<\/a>) has entered into agreements to sell <strong>$1.4 billion<\/strong> in direct lending investments from three of its credit funds to North American pension and insurance investors. The sale includes assets from Blue Owl Capital Corporation (<a href=\"\/stock\/OBDC\">OBDC<\/a>), Blue Owl Capital Corporation II, and Blue Owl Technology Income Corp.<\/p>\n<p>The transaction was executed at <strong>99.7% of face value<\/strong>, a move intended to provide a market-based validation of the firm&#39;s internal valuations. <em>By offloading these senior secured debt investments, Blue Owl aims to pay down debt and facilitate a significant return of capital to its investors by the end of the first quarter of 2026.<\/em><\/p>\n<h2>UK Manufacturing and Persistent Price Pressures<\/h2>\n<p>The <strong>Confederation of British Industry (CBI)<\/strong> Industrial Trends Survey for February showed a marginal improvement in the UK manufacturing sector. The <strong>Total Orders balance<\/strong> rose to <strong>-28<\/strong>, up from <strong>-30<\/strong> in the previous month, aligning with analyst expectations.<\/p>\n<p>However, the survey highlighted ongoing inflationary concerns as the <strong>Selling Prices index<\/strong> hit <strong>26<\/strong>, exceeding the estimated <strong>23<\/strong>. <em>While the pace of order declines is slowing, the higher-than-expected price expectations suggest that manufacturers are still struggling with elevated input costs and may pass these through to consumers.<\/em><\/p>\n<h2>Germany Clarifies F-35 Procurement Status<\/h2>\n<p>A spokesperson for the <strong>German Government<\/strong> stated on Thursday that there are currently <strong>no plans or decisions<\/strong> regarding the purchase of additional F-35 fighter jets. This announcement follows recent market speculation that Berlin was considering expanding its fleet beyond the <strong>35 jets<\/strong> originally ordered from Lockheed Martin (<a href=\"\/stock\/LMT\">LMT<\/a>) in 2022.<\/p>\n<p>The clarification comes as Germany continues to modernize its air force to meet NATO commitments. <em>While the existing order for 35 F-35A aircraft remains on track for delivery starting later this year, the government appears to be pausing on further commitments amid budget scrutiny and defense policy evaluations.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways France successfully auctioned \u20ac1.495 billion in inflation-linked bonds, with demand for long-dated 2040 maturities reaching a bid-to-cover ratio 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