French and Italian bond yields jump as debt worries intensify
TLT•French 10-year yields rose as much as 18 basis points, while Italian 10-year yields were up 11 basis points at 4.646%, as debt concerns and a global bond selloff pressured markets. The US 10-year yield reached 5.365%, its highest since 2002.
1. Yields rise in France and Italy
French 10-year yields were last up 12 basis points at 4.87%, after rising as much as 18 basis points. The spread between French and German 10-year yields widened 6 basis points to 136 basis points. Italy’s 10-year yield was up 11 basis points at 4.646%.
2. Investors favor German debt
Germany’s 10-year yield was flat at 3.484%, while its two-year yield fell 4 basis points to 3.042%. Traders priced in around 55 basis points of further European Central Bank tightening by May next year, down from roughly 75 basis points a week earlier. France’s finance minister said the country was considering issuing more shorter-term debt.
3. Global bond pressure
The article cited rising energy prices and concerns about government debt as factors pressuring bond markets. The US 10-year yield reached 5.365%, its highest since 2002.
