Eurozone Bond Dynamics are Concerning

Dow Jones
2 hours ago

0922 GMT - Dynamics in eurozone bond markets, where 10-year French government-bond yields jumped to multiyear highs on Friday on fiscal worries while their spreads against German peers blew higher, are "increasingly concerning," Commerzbank's Hauke Siemssen says in a note. Markets calmed on Monday, with French yields and spreads below Friday's peaks, but the trend remains: French bond yields rise while those of German peers fall. "The spread selloff seems to increasingly feed on itself," Siemssen says, adding that recent moves are "somewhat reminiscent of a sovereign debt crisis." French 10-year bond yields rise 4.9 basis points to 4.906%, below Friday's high of 4.993%, Tradeweb data show. The 10-year French-German trades at 145.90 basis points, below Friday's peak of 158.67bps.

 

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