Institution: The difference between the 10-year French government bond yield and the German government bond yield is currently in a comfortable range of around 75 basis points.
Eric Bertrand of Ofi Invest Asset Management stated in a report that despite political turbulence in France, the yield spread between 10-year French and German bonds has stabilized at 75 basis points. The chief investment officer mentioned that the French government is still unstable, but has managed to hold on to power through budget concessions. "These compromises may provide investors with a sense of security in the short term." However, he also mentioned that this view is too shortsighted, considering the challenges and risks that government debt will bring in the coming years. According to data from the London Stock Exchange Group, the yield spread between 10-year French and German bonds closed at 71 basis points on Thursday.
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