The situation in France continues to worry investors
The French 10-year government bond yield reached a new high of 5.1% this morning for the first time since 2002. While this rise certainly comes amid a generally unfavorable environment for bond markets—against a backdrop of tensions in the Middle East and rising energy prices—it also has a specifically French component. The 10-year OAT-Bund spread continues to widen, reaching 170 basis points—a high not seen since 2011—with a much more pronounced movement than seen in other eurozone sovereign bonds.
