France Bond Risk Gauge Hits 159.4 Basis Points as Energy Prices Deepen Fiscal Fears
Updated
Updated · Bloomberg · Oct 21
France Bond Risk Gauge Hits 159.4 Basis Points as Energy Prices Deepen Fiscal Fears
3 articles · Updated · Bloomberg · Oct 21
Summary
159.4 basis points — the extra yield investors demanded to hold 10-year French debt over German bunds — marked France’s highest bond risk premium in 15 years.
Rising energy prices intensified worries about France’s fiscal outlook, adding to investor concern over the country’s fragile public finances.
The spread widened by as much as 6 basis points, extending a selloff that had already pushed French 10-year yields to 5% and their highest level since 2002.
France’s borrowing stress has been building amid a weakened government, a high deficit and social unrest that investors see as complicating efforts to rein in spending before next year’s election.