FRENCH-GERMAN BOND SPREAD WIDENS TO 150 BASIS POINTS

FRANCE’S 10-YEAR YIELD PREMIUM OVER GERMANY HAS WIDENED TO 1.5 PERCENTAGE POINTS, AFTER ALREADY REACHING ITS HIGHEST LEVEL SINCE 2012.

RBC BLUEBAY’S MIKE BELL SAYS THE SPREAD COULD REACH 200 BASIS POINTS IN THE COMING MONTHS, CITING CONTINUED FISCAL AND POLITICAL UNCERTAINTY.

THE WIDENING SIGNALS INVESTORS ARE STILL DEMANDING SUBSTANTIALLY HIGHER COMPENSATION TO HOLD FRENCH GOVERNMENT DEBT. ...