Frances Risk Premium Surges Amid Fiscal and Political Concerns
4 Articles
4 Articles
The yield spread between French and German 10-year government bonds rose to 120 basis points on Wednesday for the first time since 2012. That is a psychologically important level for the market that some analysts had previously predicted could be within reach if fiscal and political uncertainty worsened, Bloomberg News reports.
Frances Risk Premium Surges Amid Fiscal and Political Concerns
Quick Summary: Frances Risk Premium Surges Amid Fiscal and Political Concerns The euro fell about 2% in September to two-month lows under $1.14 — investors are reassessing Europe’s ability to handle high gas prices and political strain. French risk premium rose above 100 basis points, the first since 2012 — investors are concerned about fiscal strain and potential political gains for Marine Le Pen. Energy prices surged with Brent crude above $1…
The market is bracing for political turbulence in France. In the CDS market, where traders can insure against cancelled payments, prices on France's five-year CDS contract have lifted at the fastest pace since the euro crisis in September. The trend is also evident in the bond market, where 10-year French yields have since risen from 3.56 percent to 4.73 percent since the turn of the year. The gap between French and German 10-year rates has thus…
Coverage Details
Bias Distribution
- 100% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
