French Bonds Slip Further Behind Spain, Portugal After Fitch Cut

French bonds underperformed their southern European peers on Monday as a credit downgrade by Fitch Ratings underscored the market impact of the political turmoil facing President Emmanuel Macron.

The nation’s notes trailed gains seen elsewhere in early trading on Monday after Fitch cut France’s credit rating on Friday to A+ from AA-, citing rising government debt, increased political polarization and doubts about the fiscal outlook. Spanish and Portuguese bonds led gains after credit upgrades from S&P and Fitch, respectively.