France’s Bond Yield Reaches Highest This Year on Snap Election
- Rate on 10-year French bonds climbs as much as 10bps to 3.19%
- Notes underperform German peers on news of snap election
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French government bonds sold off sharply on Monday amid mounting concerns over the nation’s finances after President Emmanuel Macron called a snap election.
The yield on 10-year bonds rose as much as 10 basis points to 3.19%, the highest since November, as investors worried about Macron’s ability to push through legislation if his parliamentary support is weakened. The gap between France and Germany’s benchmark bond yields widened to as much as 54 basis points, the highest since January.