French-German Yield Spread Widens to Most Since 1992 on Moody’s
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France’s 10-year bond yield climbed to the highest compared with Germany’s in almost 20 years after Moody’s Investors Service said the nation’s Aaa credit rating is under pressure due to the regional debt crisis.
French securities also fell along with those from Greece and Spain after reports showed China’s economic growth slowed and German investor confidence worsened, fueling speculation the global recovery is losing momentum. France’s financial strength has waned because of the financial crisis, New York-based Moody’s said yesterday. The euro-area’s second-largest economy is a guarantor of the European Financial Stability Facility regional bailout fund.