The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Best borrowers 2013: France enjoys record low yields

Last month, poor first-quarter growth figures showed the French economy entering triple-dip recession, while the EU postponed until 2015 the 3% of GDP fiscal deficit target, at the same time increasing pressure on the government of François Hollande to enact structural reforms of in pensions and the labour and product markets.

The impact of all this on French government debt was virtually zero. For months, French government bonds have rallied as investors outside the eurozone cast off doubts about the country’s fundamentals and pile into its paper. In April, France issued 10-year debt at under 2% for the first time ever, offering just 1.94%. By mid May these bonds were yielding just 1.88%. Agence France Trésor had even been able to issue a €4.5 billion 30-year syndicated bond yielding just 3.25% and saw it rally close to 3.11%. These are astonishing yields.

Ambroise Fayolle, chief executive of Agence France Trésor, almost has to stop himself from crowing. "I agree that it has been an extraordinary development in terms of yields, but perhaps less so in terms of spread," he says. "When I first worked at the French debt management agency, then called Bureau A1, in 1997, we borrowed at anywhere from zero to 15 basis points wide of Germany."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree