TREE NEWS update: French Finance Minister Roland Lescure said demand for French government debt remains intact even as financing costs rise. “I issue bonds every two weeks and it is going perfectly well; investors still want to buy French debt, they just demand higher yields than in the past,” Lescure said. He added he was optimistic the budget would ultimately pass and that the government must narrow the public deficit, calling it a concern requiring immediate action.
French Finance Minister Says Demand for French Debt Persists Despite Higher Yields
AI take
The minister's framing separates demand from pricing: investors are still buying French paper, but the cost of that demand has reset higher — a distinction that matters for how sovereign risk is read across euro-area debt. The explicit link between financing costs, the unresolved budget and the deficit suggests the market's focus is fiscal credibility rather than outright demand. Whether the budget passes, and whether yield spreads keep widening, is the open question.
Generated by AI for reference only.
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