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Could France be a riskier bet than Croatia? The bond market will have a say in 2025


Published on 2024-12-31 16:20:56 - MSN
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  • French 10-year bond yields are climbing ever higher, showing a mounting concern for the country's finances. But does the current pricing spell trouble for the country's future debt servicing? View on

The article discusses the potential economic risks associated with France, particularly in comparison to Croatia, as reflected by the bond market dynamics. It highlights that France's political landscape, marked by President Emmanuel Macron's decision to call a snap election, has introduced significant uncertainty. This uncertainty has led investors to demand higher yields on French bonds, with the yield on 10-year French government bonds rising to 3.19%, surpassing that of Croatia for the first time. This shift indicates that investors perceive France as a riskier investment than Croatia, a country with a history of economic instability. The article suggests that the bond market's reaction could foreshadow economic challenges for France, especially if political instability persists, potentially affecting its credit rating and borrowing costs. The situation is set to be closely watched as it unfolds into 2025, with implications for both domestic and international investors.

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