French Bond Auctions Awaited Amid Fiscal Fragility

Dow Jones10-15

0609 GMT - French government bond issuance is expected to draw attention on Thursday as France's fiscal challenges remain a source of concern among bond investors. "When mapping current spreads to our sovereign score, France stands out, trading more than 40 basis points above what fundamentals alone would suggest," Commerzbank's Erik Liem and Rainer Guntermann say in a note. "At the same time, France remains the weakest link within the EGB [eurozone government bond] complex and a substantial risk premium is warranted given the fragile fiscal backdrop and looming elections," the rates strategists say. Commerzbank stays cautious on French bonds. The French Treasury Agency will auction 10 billion euros to 12 billion euros in nominal bonds and 750 million euros to 1.250 billion euros in inflation-linked bonds.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment