France Readies First Bond Auction Since Election Ends Fiscal Fears

  • Treasury sells €14b, upper end of target, via bonds, linkers
  • Volatility has faded with no absolute majority for any party

President Emmanuel Macron’s decision to call a vote last month raised the specter of unbridled public spending under a far-left or far-right government. 

Photographer: Nathan Laine/Bloomberg
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France received good demand for its first bond auction since the election earlier this month, a result that will help turn the page on a turbulent period for the nation’s markets.

The Paris-based Treasury raised €11.5 billion ($12.6 billion), the upper end of its target, with the sale of four notes with maturities that span out to 2032. Combined orders were more than €28 billion. It also issued €2.5 billion of inflation-linked bonds.