French government bond yields rose and the spread versus German Bunds widened on Monday after some of the worst riots in recent years broke out over the weekend, with Deutsche Bank's Jim Reid warning the unrest adds political risk ahead of elections and traders watching for contagion to Italy.
Jin1010/19, 02:14 PM
- 10bp
- 4.99%
Figures as quoted by Jin10
Market impact
Which way this story pushes each asset. An inference from the story, not a measured move.
EUR
Pushes down
DaysMedium confidence
French political unrest and widening Bund spread raise eurozone political risk premium
What could change this
If the unrest fades without spreading to Italy or other eurozone sovereigns, the spread widening may stay contained to France.
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