Bonds
French Bonds Gain as Investors Wait for New PM to Follow Barnier
- President Macron will address the nation later Thursday
- Analysts still point to period of political instability ahead
French bonds gained as investors awaited the appointment of a new prime minister and assessed the outlook for the nation’s finances after Michel Barnier’s government collapsed.
Markets had been expecting the ouster so the reaction was muted, with traders mostly adjusting positions and closing out wagers. The 10-year French notes extended small gains on Thursday, lowering the yield to 2.87%. The premium investors demand to hold French debt over safer German notes fell four basis points to 81 basis points, and the euro outperformed.