France Sells 10-Year Debt at Record Yield Before ECB Decision

Photographer: Balint Porneczi/Bloomberg

In France, the euro area’s second-largest economy, jobless claims have jumped to a record high of 3.22 million, while the consumer price index has dropped for seven straight months. Close

In France, the euro area’s second-largest economy, jobless claims have jumped to a... Read More

Close
Open
Photographer: Balint Porneczi/Bloomberg

In France, the euro area’s second-largest economy, jobless claims have jumped to a record high of 3.22 million, while the consumer price index has dropped for seven straight months.

France’s cost of borrowing for 10 years tumbled to a record low before the European Central Bank’s interest-rate decision today.

The treasury sold 4.02 billion euros ($5.3 billion) of 2023 debt at an average yield of 1.81 percent, less than the previous record of 1.94 percent set a month ago. It also sold 990 million euros of 2032 bonds and 2.92 billion euros of 2021 bonds.

The record-low borrowing costs come as ECB President Mario Draghi is expected to react to plunging European inflation and economic confidence by trimming the central bank’s benchmark rate by a quarter-point to a record low of 0.5 percent, according to 44 out of 70 economists in a Bloomberg News survey.

“An interest rate cut makes sense,” Tobias Blattner and Emily Nicol, economists at Daiwa Capital Markets in London, said in a note to clients. “By cutting its refinancing rate, the ECB would send a strong signal that rates will stay at record low levels for some time to come.”

In France, the euro area’s second-largest economy, jobless claims have jumped to a record high of 3.22 million, while the consumer price index has dropped for seven straight months.

To contact the reporter on this story: Mark Deen in Paris at markdeen@bloomberg.net

To contact the editor responsible for this story: Vidya Root at vroot@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.