French OAT futures rise after Moody's leaves rating unchanged

By Reuters News

SINGAPORE, Oct 26 (Reuters) - French OAT futures rose in early trading on Monday after Moody's spared France a credit rating downgrade last week, easing pressure on a government struggling to restrain social unrest and shore up strained finances.

The bond futures were up 0.6% at 108.31 with the implied yield at 4.995% after Moody's said it wrapped up a periodic rating review, leaving it at Aa3, which has carried a negative outlook since last October.

French 10-year bond yields hit a fresh 24-year high above 5% on Thursday, driving their premium over benchmark German Bunds to nearly 180 basis points , the most since the depths of the euro zone debt crisis in 2011.

The latest catalysts are a huge fiscal deficit that has been complicated by political stalemate in Paris and the worst civil unrest in years.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.
 

Cryptocurrency-related content is intended solely as news and market commentary. Crypto Derivatives are not available to Retail clients registered with Capital Com (UK) Ltd.