Economics
French Bonds Feel the Blues on Fear of Japanese Bidding Sayonara
- Higher yields in Japan fan concern about repatriation of funds
- France-Germany 10-year spread has increased from lows in April
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Tremors from the Bank of Japan’s policy changes are being felt in France.
French bond investors are now more fixated on what their counterparts from Japan are up to than developments in their own region, and for a good reason. France ranks No. 2 among the $2.4 trillion of global debt owned by buyers from the Asian nation, and that makes the securities particularly vulnerable to the risk that rising yields in Tokyo could lure some of that money back home.