Market Flash on French Government Bond Turmoil

French Bond Yields Rise after S&P Downgrades Credit Rating

In an unforeseen move, S&P Global Ratings downgraded the French sovereign credit score from AA- to A+ amidst recent political turmoil in Paris. The move triggered a fall in the price of French bonds in Monday trading with yields rising in tandem, reflecting the increased risk felt by investors.

Leading up to this news, EquiLend Data & Analytics saw rising negative sentiment around the French Bond market as demand for these bonds continually increased since March of this year. The EquiLend Borrow Value across the sector rose significantly in the last year but notably jumped 11.6% in the last quarter alone, increasing from $90 billion to over $100 billion.

Demand for French Government Debt is not limited to one or two issuances either. The list below highlights the 10 ISINs with the biggest rise in EquiLend Borrow Quantity over the last month. Be sure to log in to EquiLend Data & Analytics today to get the full list leveraging the new Screener functionality!

ISIN	Bond	EquiLend Borrow Quantity	MoM Difference	MoM (%) Difference
FR001400PM68	FRTR 3 ½ 11/25/35	4,577,865,080	1,346,403,000	42%
FR0000571218	FRTR 5 ½ 04/25/29	9,348,774,470	1,028,608,000	12%
FR001400XLW2	FRTR 2.4 09/24/28	1,532,520,000	648,722,000	73%
FR001400AQH0	FRTR 0.1 07/25/38	635,010,902	249,107,500	65%
FR0010371401	FRTR 4 10/25/38	1,278,659,251	227,469,999	22%
FR0011461037	FRTR 3 ¼ 05/25/45	1,185,952,820	221,690,091	23%
FR001400NBC6	FRTR 2 ½ 09/24/27	1,784,110,999	199,179,000	13%
FR0013154044	FRTR 1 ¼ 05/25/36	1,970,777,999	198,905,000	11%
FR0013234333	FRTR 1 ¾ 06/25/39	1,400,346,907	188,673,186	16%
FR001400AIN5	FRTR 0 ¾ 02/25/28	1,976,783,079	171,861,000	10%

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