French Bond Risk Soars Amid Budget Crisis Threatening Government Stability

Reported about 9 hours ago

The risk associated with French bonds has surged to levels not seen since the Eurozone debt crisis due to a political impasse over the national budget, raising concerns about the potential collapse of Prime Minister Michel Barnier's government. Investors are wary as the premium for 10-year French government bonds over German bonds reached 89 basis points, with forecasts suggesting it may rise to 100 basis points if the government fails to pass the budget, which is complicated by opposition threats and economic deterioration.

Source: YAHOO

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