French 10-Year Yield Climbs Above 5% Ahead of Moody's Oct. 23 Review
Updated
Updated · Central Oregon Daily · Oct 22
French 10-Year Yield Climbs Above 5% Ahead of Moody's Oct. 23 Review
3 articles · Updated · Central Oregon Daily · Oct 22
Summary
France's benchmark 10-year bond yield kept rising after breaking 5% for the first time since 2002, extending pressure on government borrowing costs.
Investors are questioning Paris's ability to repair fragile public finances as political turmoil drags on and planned protests threaten further disruption to spending restraint efforts.
Moody's is due to review France's Aa3 sovereign rating on Oct. 23, and its negative outlook has heightened fears that a downgrade could push yields higher still.
The euro has steadied after a month-long slide despite France's fiscal strains, while broader market sentiment stayed cautious with Euro Stoxx 50 futures down 0.7% and S&P 500 e-minis off 0.63%.