Eurozone government bond yields rose in early trade, with French sovereign debt
lagging after Paris reiterated plans to keep the deficit below 5% of GDP amid
budget negotiations. ING strategists Michiel Tukker and Benjamin Schroeder said
Le Pen’s fiscal proposals "may support French bonds in the short term, but a
lack of credibility and pre-election uncertainty leave spreads at risk of
widening." Eurozone yields tracked US Treasuries higher ahead of Fed minutes due
later; Germany’s 10-year yield rose 2.2bp to 3.495%, France’s 10-year rose 5.4bp
to 4.806%.
