French Debt Risk at 12-Year High

  • Investors doubt the stability of France’s government amid budget disputes.
  • French 10-year bond yields at 3.02% vs. Germany’s 2.16%, creating a 0.86% spread, the widest since 2012.
  • Government’s budget passage issues could lead to collapse, warn analysts.
  • PM Barnier predicts market chaos if government fails.
  • Jefferies’ Kumar believes the government will survive with compromises, expecting more debt and higher premiums.
  • Political discord since Macron’s snap election adds to investor concerns over France’s increasing debt and deficit.

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