French Government-Bond Yields Turn Lower but Risk Further Selling

Dow Jones
Oct 05

1301 GMT - French government-bond yields turn lower as buying resumes given yields are so close to multiyear highs. However, French bonds will likely remain volatile as France's fiscal credibility faces pressure from missed deficit targets, political gridlock and rising interest costs, eToro strategist Lale Akoner says in a note. The bonds look cheap but this doesn't mean they are attractive, she says. Potential selling by Japanese institutions, who are major foreign holders of French government bonds, could "add to market volatility," she says. The key will be whether bond-market selling spreads beyond France to other European countries, she says. French 10-year yields fall 3.8 basis points to 4.818%, having hit 4.993% on Friday, their highest since 2002, Tradeweb data show.

 

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