French Bond Risk Drops 11 Basis Points as Moody's Keeps Aa3 Rating
Updated
Updated · Bloomberg · Oct 25
French Bond Risk Drops 11 Basis Points as Moody's Keeps Aa3 Rating
3 articles · Updated · Bloomberg · Oct 25
Summary
France’s 10-year bond spread over Germany narrowed as much as 11 basis points to 157 on Monday after Moody’s refrained from cutting the sovereign rating.
That relief eased a weeks-long selloff in domestic assets, lifting French stocks and the euro ahead of regional peers.
Moody’s had already affirmed France at Aa3 while keeping a negative outlook, after unrest and fiscal worries pushed 10-year yields to their highest since 2002.
Investors remain focused on France’s debt burden and its ability to cut the budget deficit to 5% of GDP by 2027.