France-Prompted Repricing in Eurozone Bonds Doesn't Call for ECB Intervention
Dow Jones
Yesterday
0458 GMT - The France-led repricing has started to spill over into the broader eurozone government bond, credit and bank-funding markets, but the bar for a European Central Bank intervention remains high, SEB's Jussi Hiljanen says in a note. For the ECB to step in, the contagion has to become much more severe, the chief rates strategist says. Hiljanen expects that the situation around France's budget talks won't escalate further at this point, which would allow the 10-year Bund yield to oscillate mostly in the 3.40%-3.60% range in the near term. The 10-year German Bund yield closed at 3.473% on Wedesday, according to Tradeweb.
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