High impact
France's 10-year bond yield rose to 5.142% and its spread over German Bunds widened to 173 basis points, the widest since 2011, while U.S. 10-year Treasury yields fell 7.3 bps to 5.072% and the iTraxx Crossover index hit 329 bps, a nearly seven-month high.
Bloomberg10/22, 05:38 PM
Market impact
Which way this story pushes each asset. An inference from the story, not a measured move.
EUR
Pushes down
DaysMedium confidence
France-Germany spread widened to 173bps, widest since 2011, on rising French fiscal risk
US10Y
Pushes down
IntradayMedium confidence
10-year Treasury yield fell 7.3bps amid safe-haven flows tied to European credit stress
USD
Pushes up
IntradayMedium confidence
Rising iTraxx Crossover and European fiscal stress can lift safe-haven demand for USD
What could change this
If French political and fiscal risk eases, the spread could narrow and reduce the safe-haven bid into Treasuries.
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