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French 10-year bond yields rise as euro dips near 17-month lows

The spread between French and German borrowing costs widened to its widest level since 2012, signaling renewed investor concern about France’s fiscal outlook.

Reported · Written up by our desk · Government Bonds

Eurozone market stress is returning as the euro trades close to a 17-month low, after falling by more than 0.75% to as low as €1.1214, according to Guardian Business.

The outlet links the move to a renewed sell-off in France’s government bond market, saying concerns about Paris’s fiscal position are pushing borrowing costs higher amid a broader global sell-off of sovereign debt.

In that backdrop, the gap between France and Germany’s borrowing costs, a key measure of investor concern, widened to its widest level since 2012, the Guardian reports.

Ipek Ozkardeskaya, a senior analyst at Swissquote, told the Guardian that jitters about France are weighing on the euro, describing weak appetite for French debt as an issue for the wider euro area and the euro itself.

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