Economic Information Agency (21st) report: Selling pressure on French government bonds has re-emerged as investors express concerns over the country's fiscal outlook and political instability. The yield spread between French and German 10-year government bonds widened to approximately 153 basis points on Tuesday (20th), surpassing the 150-basis-point threshold again, reflecting the market's demand for a higher risk premium for holding French government debt.
The yield on France's 10-year government bond rose by about 3 basis points to 4.96%, approaching the earlier monthly high of 4.9937%, the highest level since July 2002. Meanwhile, the yield on Germany's 10-year government bond fell by about 2 to 3 basis points to around 3.43%, further widening the yield gap between the two countries. Earlier this month, the French-German yield spread had risen to about 159 basis points, the highest level since 2011. (kk)
The yield on France's 10-year government bond rose by about 3 basis points to 4.96%, approaching the earlier monthly high of 4.9937%, the highest level since July 2002. Meanwhile, the yield on Germany's 10-year government bond fell by about 2 to 3 basis points to around 3.43%, further widening the yield gap between the two countries. Earlier this month, the French-German yield spread had risen to about 159 basis points, the highest level since 2011. (kk)