Marine Le Pen's Rise Leads to Higher Interest Rate on French Government Bonds

Reported 8 months ago

Bond investors are expected to demand a higher interest rate on French government borrowing for years due to Marine Le Pen's National Rally party's increasing lead in the polls. This shift could have significant implications for France's economy, as the French 10-year bond yield has risen more than 30 basis points recently. Zurich Insurance Company and Neuberger Berman predict that even if Le Pen's party does not achieve a majority in the upcoming vote, the market will continue to require a higher yield to purchase French debt, leading to increased borrowing costs for the state.

Source: YAHOO

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