French government bonds tumble as unrest shakes investor confidence
French bond yields hit their highest spread versus German bonds in two weeks as violent protests signal political instability.
French government bonds sold off sharply after a weekend of violent unrest. The spread between French and German 10-year bond yields widened by as much as eight basis points to 146 basis points, the highest level in two weeks.
The gap to Italian yields reached a fresh record. The euro weakened while France's main stock index, the CAC 40, fell 1.2%.
- Eight basis points
- Spread widening
- 146 basis points
- French-German spread
- 1.2%
- CAC 40 decline
- Two weeks highest
- Duration
Why it mattersBond market moves show where large investors see risk. France's widening spreads suggest concern about the country's economic stability.
AustraliaNo direct Australian effect yet, but a European debt crisis could harm global markets and Australian investment returns, while affecting export demand for Australian goods.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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