French Govt Bond Yield Spread Might Have More Room to Widen
Dow Jones58 minutes ago
0536 GMT - The spread widening in French government bonds is not over, given France's fiscal situation, RBC Capital Markets strategists say in a note. Generally speaking, the short-term risks in bond yields are skewed to another push higher in yields, they say. "But with so much priced in for central bank rate hikes, the risks to bond yields are tilted to the downside over the medium-term, especially if growth/inflation data disappoints." Any decline would be dependent on repricing central bank hikes or cracks in risk assets, they add. The 10-year French OAT-German Bund yield spread closed at 141.7 basis points on Wednesday.
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