From Seekingalpha · ING Economic and Financial Analysis · · 50s
Rates Spark: Welcome To The 5% Club
French bonds break 5% as ECB hints at inflation risks.
In brief
French bonds break 5% as ECB hints at inflation risks. French government bond yields exceeded 5% after initial resistance, with ECB officials not yet showing dovish stance on market turbulence. Originally reported by Seekingalpha.
French bonds break 5%
The 10-year French government bond yield initially found resistance around 5% but easily broke that handle later in the day.
Euro swap curve resilient
The front end of the euro swap curve was quite resilient to the latest sell-off in French bonds, suggesting inflation risks remain the focus.
ECB officials cautious
ECB officials have not made a clear dovish turn on the latest turbulence in EGB markets, but this could change if the growth outlook is impacted.
The takeaway
French government bond yields exceeded 5% after initial resistance, with ECB officials not yet showing dovish stance on market turbulence.
