ECB's Lagarde: As of itself, French banking system is not a source of risk
Less than 1 min read
Key points:
- France doesn't currently require IMF involvement
- French banking system is in a better place than when during the 2008 crisis
- I am looking very attentively at the French bond spreads situation
I sort of remember someone saying a few years ago that it wasn't the ECB's job to "close the spreads". Life is funny sometimes, eh? French 30-year bond yields have bombed out of control amid political worries, rising to its highest since 2011 in the past week. That is seeing the spread between 30-year yields and 2-year yields climb up to 240 bps, the most since 2018. This article was written by Justin Low at investinglive.com.