France’s borrowing costs ticked higher on Monday as traders reacted to Fitch’s decision Friday to downgrade the country’s credit rating amid ongoing uncertainty over the country’s political leadership.
Fitch downgraded France’s credit rating from ‘AA-’ to ‘A+’ with a stable outlook, citing a “high and rising debt ratio” and warning that “political fragmentation” was hindering fiscal consolidation.
On Monday morning, the yield on France’s benchmark 10-year government bond
initially moved 7 basis points higher to 3.5132% at 7.40 a.m. London time, whereas the yield on the 30-year bond
, or OATs as they’re called in France, rose 8 basis points to 4.3351%.
