France announces new 31-year bond in sign of market optimism

France has today announced a 31-year government bond, in a sign of further market optimism after the victory of Emmanuel Macron in the recent presidential election.

The debt, which is expected to price later this week, had been previously planned as part of the country’s funding programme for the year.

The timing of the syndicated deal comes just over a week after Mr Macron’s victory in the final round of the election, and will provide a further test of market appetite for French assets in a climate of reduced political risk.

It also follows a week in which European issuers, especially banks, rushed to sell debt and take advantage of improved market conditions.

The yield on 10-year French government bonds are trading at 0.88 per cent, down from over 1.1 per cent in mid-March. In the build-up to the election, French assets sold off over the perceived risk of a victory for Marine le Pen, the anti-euro candidate.

BNP Paribas, Citi, HSBC, JP Morgan and Societe Generale are on the deal.