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The Economic Times
The Economic Times
Business

Global Markets: French bond spread at highest since 2012 as default insurance spikes

Investor concerns over France's stretched finances ahead of next year's elections drove the risk premium on French government bonds to its highest level since the euro zone debt crisis on Friday, while the cost of insuring the country's debt also rose sharply.

The spread on French 10-year government bonds over Germany's rose as high as 104 basis points, exceeding a whole percentage point for the first time since 2012, as investors demand higher compensation for the risk of holding the debt.

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