Federated Hermes portfolio manager John Sidawi said in a report that recent selling in French government bonds has pushed prices materially lower and partially unwound crowded positions, creating selective short-term tactical buying opportunities. He warned cheaper prices do not make the asset class broadly attractive: Federated Hermes remains cautious on France’s structural outlook, citing a large fiscal deficit, a rising debt burden, persistent political resistance to reforms, and the risk tha

Federated Hermes portfolio manager John Sidawi said in a report that recent selling in French government bonds has pushed prices materially lower and partially unwound crowded positions, creating selective short-term tactical buying opportunities. He warned cheaper prices do not make the asset class broadly attractive: Federated Hermes remains cautious on France’s structural outlook, citing a large fiscal deficit, a rising debt burden, persistent political resistance to reforms, and the risk that higher borrowing costs could further weaken public finances, while other parts of Europe are comparatively better protected.