0618 GMT - Eurozone government bond yield spreads have consolidated a bit from their recent highs, but investors remain cautious, awaiting greater clarity or better entry levels, say Societe Generale rates strategists in a note. Caution persists regarding potential new waves of volatility in French government bonds, or OATs, "given uncertainties about next protests, budget negotiations and investors not yet keen to add a lot of risk," they say. However, spillovers from France-specific moves to other eurozone government bonds are getting smaller. "Belgium and Italy remain the most exposed to a repricing of French risk, but we are far from a broader euro-area sovereign shock," the rates strategists say.
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