France’s borrowing costs fall in solid long-term bond auction that raises euro 7.4bn

 France’s borrowing costs fell in a bond auction Thursday that sold €7.4 billion ($9.7 billion) in long-term debt.

France has a significant amount of debt, and some investors are concerned it isn’t serious enough about reducing it. They are closely following the country’s presidential election campaign for signs that the next leader will limit spending and revive growth.

In the largest issue in France’s sale, the yield, or interest rate, on a 10-year bond edged down to 2.96 percent from 2.98 percent when it was last issued in April.

Another class of 10-year bond saw a far more significant drop to 2.85 percent from 3.29 percent when it was issued in January.

In another sign of investor confidence, demand was high and the amount of money raised was at the very top of the range set out by the French Treasury.

France’s borrowing costs fall in solid long-term bond auction that raises euro 7.4 bn($9.7bn) - The Washington Post