France Now Has to Face Bond-Market Risk It Prefers to Ignore
- Investors swing their focus back to debt sustainability
- Yield premium may be in new, higher range, investors say
A political shock in France has forced bond investors to confront the reality that the nation’s fiscal deficit is an issue for here and now, not years down the road.
The country has long benefited from investors dismissing the threat posed by its poor public finances given its core position within the euro area.