The gap between Germany’s borrowing rates and those of France is widening again


Since January, this gap has widened continuously. In early April, it increased to 55 basis points, ie 0.55%, before falling slightly.

the spread is back. This esoteric term, originating from the world of finance, burst into the media a decade ago. It designates the difference between two rates, for example between those at which Germany and France borrow on the markets. In 2011 and 2012, during the sovereign debt crisis in the euro zone, the spread between German and French bond issues had widened dangerously. It then reflected the difference in confidence placed by investors in Berlin, the virtuous, and in Paris, the spendthrift.

However, since January, the gap between French and German rates has widened continuously. At the beginning of April, the gap widened, up to 55 basis points, as the financiers say, that is to say 0.55%. “Investors factored in electoral risk when Emmanuel Macron’s victory no longer seemed so assured“, describes Philippe Gudin, chief economist at Barclays in charge of Europe. The gap has since been slightly…

This article is for subscribers only. You have 72% left to discover.

Cultivating your freedom is cultivating your curiosity.

Keep reading your article for 1€ the first month

Already subscribed? Login



Source link -93