French OAT futures rise after Moody's leaves rating unchanged
TLT•French OAT futures rose 0.6% after Moody's left France's Aa3 credit rating unchanged, with a negative outlook. French 10-year yields had hit a 24-year high above 5% on Thursday.
1. Futures rise
French OAT futures rose 0.6% to 108.31 in early trading on Monday, with the implied yield at 4.995%, after Moody's left France's rating at Aa3 following a periodic review. The rating has carried a negative outlook since last October.
2. Fiscal pressures
French 10-year bond yields hit a fresh 24-year high above 5% on Thursday, pushing their premium over German Bunds to nearly 180 basis points, the widest since the depths of the euro zone debt crisis in 2011. The article cites a large fiscal deficit, political stalemate in Paris and civil unrest as pressures on the government.
