So the market appears geared up for a rate cut from the ECB next week and European bond yields have been hammered of late. French 10 year now yields just 1.75%. That's low, especially when stacked next to the US rate of 1.70%.
With French economic projections being lowered seemingly every other day, and the US base rate being lower than the European base rate even if the ECB cuts 25bps next week, this spread certainly looks very enticing.
With French economic projections being lowered seemingly every other day, and the US base rate being lower than the European base rate even if the ECB cuts 25bps next week, this spread certainly looks very enticing.
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