Reported about 1 year ago
Investors are showing a heightened demand for French bonds over German bonds, resulting in the largest risk premium difference since 2012. Concerns are rising due to the upcoming elections in France, with fears that the winning parties may lead to increased public spending. The spread between the 10-year bond yields of the two countries has reached 80 basis points, the widest since the Eurozone debt crisis. Markets are closely watching for potential contagion effects on broader European and global rates as France's leftist alliance proposes significant additional spending and the potential reversal of President Macron's pro-business reforms.
Source: YAHOO