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Yields drop as France sells 5- and 10-year debt

Published 09/06/2012, 05:10 AM
EUR/USD
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Investing.com - France saw bond yields fall at an auction of five- and 10-year government bonds on Thursday, as investors looked ahead to the European Central Bank’s policy meeting later in the day.

France’s Treasury sold EUR7.98 billion of government bonds, having set a target for between EUR7 billion and EUR8 billion.

France sold EUR3 billion of 10-year bonds at an average yield of 2.21%, down from 2.53% last month.

Demand was slightly stronger, with bids exceeding supply 2.10 times, compared to a “bid-to-cover” ratio of 1.93 last month.

The country also sold EUR1.53 billion of five-year bonds at an average yield of 1.05%, compared to 1.89% last month, as well as EUR3.45 billion of 15-year bonds at a yield of 2.85%, down from 2.90% in August.

The yield on French 10-year bonds stood at 2.23% following the auction, while the euro remained higher against the U.S. dollar, with EUR/USD adding 0.11% to trade at 1.2613.

Meanwhile, European stock markets remained broadly higher. France’s CAC 40 gained 1.1%, the EURO STOXX 50 jumped 1.25%, Germany's DAX advanced 1.35%, while London’s FTSE 100 was up 0.75%.

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