French bonds buck credit rating blues
Published: 05 Dec 2012 21:43 GMT+01:00
The yield on 10-year French government bonds fell briefly below two percent for the first time ever on Wednesday as investors snapped up what are now seen as safe investment instruments.
In early afternoon trading, the yield on 10-year bonds fell to 1.994 percent in the secondary market, from 2.033 on Tuesday and below the previous record of 2.002 percent set in August.
The rate then eased back up however to 2.003 percent, still a remarkable level for a country with its own public finance problems and which has lost its top credit rating this year from two major agencies, Standard and Poor's and Moody's.
France, which has the second-biggest economy in the eurozone, has benefited from a steady drop in its cost of borrowing, with very short-term treasury
notes even attracting investors at overall negative rates taking into account redemption conditions, which means they were essentially paying to hold the debt.
After Germany, which issues what is considered the safest eurozone debt, France is now seen as a sure place to place funds.
On Wednesday, the benchmark German 10-year Bund was trading on secondary markets with a yield of less than 1.4 percent.
France vs Netflix, Amazon and Google
France wants to tax Netflix and Amazon to boost its own film and TV industry. Photo: Netflix
France is looking to decide this year on how it might tax US online giants Google, Amazon and Netflix to help fund its heavily subsidised film and television sector in response to changes brought on by Internet video streaming.
Services returned to normal on the Paris RER A on Friday. Photo: Thomas Samson/AFP
There was relief for commuters in Paris on Friday morning after transport authorities announce a return to normal service on the RER A, a day after a cripling wildcat strike caused travel chaos.
Paris Terror Attacks
People hold placards reading "Je suis Charlie" (I am Charlie) during a Unity rally “Marche Republicaine” on January 11, 2015 in Paris. Photo: Loic Venance/AFP
Since the Paris shootings numerous people have been hauled before a judge or spoken to by police for expressing support for the terrorists, often in a drunken state. From an eight-year-old boy to an outspoken comic, here's a look at how they fell foul of the law
A TGV train in France. Photo: eldelinux/Flickr
If you haven’t had the chance to explore all of France's little corners, French rail operator SNCF has just released a new travel pass offering unlimited travel for just €60 per month.
No room on the escalator at Châtelet Metro station during Thursday's chaos.
UPDATED: Commuters in Paris faced continued travel chaos on Thursday after train drivers on the RER held a wildcat strike following a violent attack on one of their colleagues. Drivers said they will not return to work meaning more bedlam for workers heading home after work.
The number of registered flu cases has doubled within the last week. Image: Screengrab Bien Public
A flu epidemic has taken hold in France after the number of infections increased sharply over the past two weeks and will continue to rise. The spread of the virus has been aided by the inefficiency of this year's flu jab.
Opinion - Freedom of speech
Has it gone too far? French police question eight-year-old over alleged pro-terrorist comments. Photo: Fred Dufour/AFP
After a school pupil, aged just eight, was reported to police for allegedly praising the Paris gunmen, Human Rights League, a French civil liberties group, tells The Local that France is in danger of giving the terrorists exactly what they wanted.
Guest blog - Myth of French lovers
Not to say that actor Louis Garrel disappoints, but he does look a bit like the stereotypical French lover. Photo: mmatins/Flickr
After regularly having to lend an ear to her Anglo friends left disappointed by the failure of their French lovers to live up to expectations, blogger Muriel Jacques, who runs the site "French Yummy Mummy" clears up a few common myths about Frenchmen.
These new graduates at the French Prefecture de Police will be given greater psychological support to prevent suicides. Photo: Fred Dufour/AFP
France’s interior minister Bernard Cazeneuve has unveiled a new plan to tackle the taboo subject of suicides in the police force after a sharp rise in the number of officers taking their own lives.
Norwegian chef Orjan Johannessen (C) holds a Norwegian flag as he celebrates with coach Odd Ivar Solvold (C-L) and teammate Jimmy Oien (R) after winning the Bocuse d'Or. Photo: AFP
Despite the so-called 'world cup for chefs' being held on home soil in Lyon, France failed to pick up the Bocuse d’Or this year as Nordic and American chefs took the podium places.