Underperformance in French Government Bonds Might Continue
Dow Jones
Aug 19
0558 GMT - Underperformance in French government bonds, or OATs, likely has more room to run given key economic and political events ahead, Commerzbank's Hauke Siemssen says in a note. "We think that the OAT underperformance can continue with the French budget season and next year's elections looming large," the rates strategist says. The 10-year French OAT-German Bund yield spread is "scratching" on last year's highs above 85 basis points, and the 10-year OAT yield is also trading some 4-5 basis points above the 10-year Italian BTP yield, "underscoring the recent bearish momentum in France," he says.
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