French Downgrade No Bar to Hollande as Investors Weigh Cut
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French President Francois Hollande’s government will probably be able to keep borrowing at record-low interest rates even after Moody’s Investors Service’s decision to downgrade the nation’s debt.
The drop in French bonds today put only a small dent in the 9.4 percent rally since Standard & Poor’s stripped the country of its AAA status in January. The gains are more than double the rest of the global government bond market, according to Bank of America Merrill Lynch indexes, surpassing those of the U.S. and top-rated Germany, the U.K. and Australia.