French bond market sell-off spreads, major institutions buy eurozone bonds at low prices
智通财经2026/10/08 04:361. This month, French government bonds experienced a sell-off that spread to the broader eurozone market, attracting large investors to scoop up heavily hit assets, including Italian bonds and corporate bonds. Investors are betting that concerns about the risk of contagion in the market may be exaggerated. 2. The financing cost premium for 10-year French government bonds over 10-year German government bonds has widened to 1.4 percentage points, an increase of about two-thirds since the beginning of the month. As worries about the potential consequences of a French debt crisis intensify, the spreads of other eurozone bonds have also widened, with Italian government bond spreads rising above 1.1 percentage points. 3. Several large asset management institutions have said they have decisively bought bond assets affected by the sell-off, arguing that it is unlikely that the eurozone will repeat the economic collapse seen during the debt crisis more than a decade ago. Institutions such as abrdn believe, “This is not a repeat of the situation in the early 2010s.”
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