Two weeks after the announcement of the dissolution of the National Assembly, have the markets already regained their senses? Last week, the Paris Stock Exchange rebounded (+1.67%), the risk premium on French rates almost stabilized, and the Treasury managed to place more than 12 billion euros of debt on the walk. But this is a sham lull. As long as they do not have the result of the legislative elections and cannot assess their impact on public finances, investors will remain nervous. As proof, French rates are more than ever under pressure.
On Friday, they did not benefit from the easing movement on European bond markets, when it appeared that private sector activity had slowed down in June in Germany and France. On the contrary, after the announcement of the costing of the program of the New Popular Front, they almost returned to the level to which they had climbed just after the dissolution (3.21%). As a result, the 10-year rate spread between France and Germany ended the week at 80 basis points. It had not reached such a high level at the end of the session since November 2012.
