Ten-Year French OAT-German Bund Yield Spread Could Test 75 Basis Points -- Market Talk
Dow Jones
Jul 15, 2025
0717 GMT - The spread between 10-year French OATs and 10-year German Bunds could rise towards 75 basis points, from 70 basis points currently, as focus shifts to next year's budget, Danske Bank Research's Jens Peter Sorensen says in a note. French Prime Minister Francois Bayrou is expected to announce measures to cut the budget deficit in 2026 to 4.6% from 5.4% in 2025, the chief analyst says. "This is [the] government's current target, but the budget for 2026 is likely to slip." This could lead to another vote-of-confidence of the French government, Sorensen says. The uncertainty has pushed the 10-year OAT-Bund spread wider by some 4-5 basis points since the start of July, he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 15, 2025 03:17 ET (07:17 GMT)
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