Closing out a week of AAA-rated government debt offerings in Europe, France on Thursday placed nearly 9 billion euros ($11.786 billion) of bonds to strong demand, with yields higher but in line with secondary market yield rise.
Reuters reported that 10-year yields on French bonds are up about 55 basis points from their last offering in November, when the October 2020 bond last came up for acquisition. In the secondary market, the 10-years yielded 3.371%; that was approximately 41 basis points above the Bund. The yield premium remained steady at the conclusion of the sale.
The strong demand for French paper, and German on Wednesday, reassured markets that had worried about weak auctions for German Bunds at the end of 2010. However, weaker nations begin their own bond sales next week; that will test the market's resolve.
