French Government Bonds Extend Gains as Spread Over German Bunds Narrows by 12 Basis Points
Deep News
Yesterday
French government bonds extended their rally, driven by stronger market risk appetite and capital flowing out of safe-haven assets, with the yield spread between French 10-year government bonds and German bonds of the same maturity narrowing to its lowest level since September 30.
The spread between French and German government bonds narrowed by 12 basis points to 125 basis points.
Amid concerns over political and fiscal risks, the spread had widened to 159 basis points last Friday, the highest level since 2011.
Italian government bonds also benefited from improved risk appetite, with the spread between Italian and German government bonds narrowing by 10 basis points to 103 basis points.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.