Euro Faces Hit from Foreign Selling of French Bonds
Dow Jones
Oct 07
0846 GMT - The euro faces further depreciation if foreign investors continue to reduce their holdings in French government bonds, known as OATs, MUFG Bank's Derek Halpenny says in a note. "With 56% of French sovereign bonds held by foreign investors, global fixed income sentiment will remain a key driver of the OAT/German Bund spread over the period ahead." Japan has been steadily cutting back on OAT holdings and other countries could be doing the same, keeping risks elevated for the assets, he says. The euro falls 0.5% to $1.1203. French 10-year yields rise 10.4 basis points to 4.856%, according to Tradeweb.
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