French Yield Premium Closes at Highest Since 2012 on Debt Risks
8 Articles
8 Articles
The French government is cutting its growth forecast and expecting more new debt, which is causing a historic shift in bond markets.
The situation in France is of particular concern to the market. Between the state of its public accounts and its political news as it approaches the presidential elections, which makes the undertaking of new reforms difficult to imagine.
This increase is a consequence of the widespread inflation resulting from the war in Iran and the deterioration of France's public finances, in a context of high political uncertainty, less than eight months from the presidential elections.
As borrowing rates rise on the markets, the situation in France is of particular concern to investors, not only because of the state of its public accounts, but also because of its political capacity to undertake the necessary reforms to reverse the trend.
The rate gap between the two, known as spread, rose to close to 0.94 percentage points on Thursday.
French Yield Premium Closes at Highest Since 2012 on Debt Risks
A measure of French bond risk rose to its highest level since Europe’s sovereign debt crisis more than a decade ago, a sign investors are increasingly wary over the country’s yawning budget deficit and uncertain politics.
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