LONDON: France’s 10-year bond yield dropped to a six-week low on Monday, outperforming Germany’s as falling energy prices continued to support European bond prices.
The French benchmark yield dropped to as low as 4.69 percent, its lowest since late September, in afternoon trade, driven by an over 5 percent fall in Brent crude oil.
It was last down 2 basis points at 4.74 percent, mirroring a rebound in oil, which was last down just 3.3 percent.
Energy prices have been a major driver of government bonds throughout this year. Yields globally soared to multi-decade highs in late September on fears about high oil and gas prices driving inflation and the scale of borrowing by governments and companies.
France’s bond yields continued to rise well into October, even as other euro zone yields stabilised, driven by worries about its fiscal position reinforced by political uncertainty and a series of street protests.
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