Greenspan Says French Yields Edging Higher is Matter of Concern
Former U.S. Federal Reserve Chairman Alan Greenspan said he’s concerned that the spread on French bond yields over German bunds is rising.
“The markets look at France and, irrespective of what it appears like, they are assessing France as a safe investment,” Greenspan said in an interview on CNBC Television today. Still, “yield spreads on bunds continue to edge higher, and that makes me a little nervous.”
While the spread between French and German bond yields shouldn’t be as wide as those on Spanish and Italian bonds, it should probably be higher than 50 to 70 basis points, he said.
“France is borrowing from its other eurozone members,” said Greenspan “Its current account deficit from the eurozone is negative. It’s the only northern member in which it’s true.”
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