France's finance minister Lescure said demand for French government bonds
remains intact and his biweekly auctions have posed no problems; investors are
willing to buy but seek higher prices (lower yields). The finance ministry said
it will not change its issuance strategy and will continue to use available
flexibility at auctions. Lescure said he is optimistic the budget bill will pass
and that the government must narrow the budget gap, calling the public finance
deficit worrying and requiring immediate action.
