French 10-Year Yield Tops 5.1%, Highest Since 2002, as Spread Over Bunds Hits Euro Crisis Levels
PARIS — France's 10-year government bond yield rose 11.5 basis points to 5.11% on October 22, touching 5.1415% at its session peak, the highest level since July 2002, Reuters reported. Concerns about France's ability to repair its public finances, coupled with ongoing street protests, weighed on sentiment.
The premium investors demand to hold French debt over German Bunds widened to 173.58 basis points, its widest since November 2011 during the euro zone debt crisis. Analysts said political uncertainty ahead of next year's presidential election and difficulties in passing a budget in Paris added to unease about the fiscal outlook.
The selloff came despite data showing French industrial sentiment improved in October. Citi economist Giada Giani said Europe is better equipped today to deal with crises than 15 years ago, though re-emerging euroscepticism is a constraint. Moody's is due to review France's Aa3 sovereign rating, which carries a negative outlook, on October 23.
Source: GSM · USA (original Chinese edition)
Photo: 巴黎布隆尼亚宫（旧证券交易所） / Palais Brongniart (former Paris Bourse)。图片：© Neoclassicism Enthusiast / CC BY-SA 4.0，Wikimedia Commons
