The Risk Premium for the 10-Year French Bond Has Reached Its Peak Since 2012
14 Articles
14 Articles
The problems in France make investors more vulnerable to German government bonds. They are again regarded as a safe haven. This can be seen in several comparisons, explains Andrea Cünnen.
While the square asks more state to a country that has to cut 40 billion of expenses, in France the differential between French and German securities continues to run, exceeding 150 points as it did not happen since 2012. The rating agencies warn: "Revolts increase the sovereign risk"
The difference is the biggest since January 2012, when the euro zone was in the midst of a debt crisis that required interventions by the European Central Bank (ECB) to prevent the financing costs from skyrocketing. Investors have been getting rid of French debt in recent weeks amid growing doubts about the government’s ability to contain spending, which were accentuated by the violent protests that shook the country over the weekend. Analysts a…
On Tuesday, the yield on the French government bond rose to more than 150 basis points above the comparable German bond, considered the European benchmark of creditworthiness.
France's risk premium reaches 149.1 points and the return on the ten-year French bond has risen to 4.925%.
Hot fall threatens to spread if the current political blockade results in the convening of legislative elections in June
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