French Assets Under Pressure as Le Pen Backs No-Confidence Vote
- Spread over German notes widened to as much as 89 basis points
- Far-right party threatens to bring down Barnier’s government
This article is for subscribers only.
French bonds and stocks came under renewed selling pressure after Marine Le Pen’s party said they would support a no-confidence vote in Prime Minister Michel Barnier’s government.
The spread between 10-year French and German notes climbed eight basis points — the biggest widening move since June — to end the day at 89 basis points, close to the highest level since 2012. The CAC 40 index dropped as much as 1.2% before erasing those losses, while the euro fell more than 1%.