Hollande Risks Squandering French Bonds’ Sweet Spot
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President Francois Hollande risks squandering an opportunity to rekindle France’s stalled economy after the nation’s latest credit rating downgrade did little to push up yields.
French 10-year bond yields have barely budged since Moody’s Investors Service Inc. on Nov. 19 followed Standard & Poor’s January decision to strip France of its top rating, rising about 10 basis points to 2.18 percent. Borrowing costs have declined since Hollande’s May election, prompting him to boast last week that 10-year yields near their Aug. 3 record low of 2.002 percent validate his policies.