French Assets Under Pressure as Le Pen Backs No-Confidence Vote

Spread over German notes widened to as much as 89 basis points
Far-right party threatens to bring down Barnier’s government

WATCH: “I don’t think that the meager 3%, or even below that yield to maturity, you’re getting on the French 10-year is a particularly attractive point,” Carmignac’s Kevin Thozey says.Source: Bloomberg

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By Aline Oyamada and Julien Ponthus

December 2, 2024 at 3:10 AM EST

Updated on

December 2, 2024 at 12:01 PM EST

French bonds and stocks came under renewed selling pressure after Marine Le Pen’s party said they would support a no-confidence vote in Prime Minister Michel Barnier’s government.

The spread between 10-year French and German notes climbed eight basis points — the biggest widening move since June — to end the day at 89 basis points, close to the highest level since 2012. The CAC 40 index dropped as much as 1.2% before erasing those losses, while the euro fell more than 1%.