French pays high rates in two and five-year bond auctions
France raised 6.976 billion euros in new two and five-year government bond sales on Thursday but was forced to pay sharply higher yields amid acute concerns over the eurozone debt crisis.
The AFT state debt management agency announced the sale of the BTAN bonds, fixed-rate treasuries with annual interest, shortly after the spread between German and French traded bonds showed the widest gap since the launch of the euro.
France will pay an average yield of 1.85 percent on 950 million euros' worth of new bonds maturing on September 25, 2013, up from only 1.31 percent in the last comparable auction in October.
Meanwhile, 1.069 billion euros in bonds maturing on July 12, 2015 will cost the government 2.44 percent, up from 1.96 percent in October, and 3.3 billion euros maturing on July 25, 2016 is up to 2.82 percent from 2.31
© 2011 AFP