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OAT: 10-year OAT/Bund Tightens 2bps As Further Fiscal Plan Details Emerge

OAT
CEEMEAEurozoneFranceBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets

The 10-year OAT/Bund spread tightens 2bps to 77bps as more details of French fiscal tightening plans emerge. OAT futures gained some ~20 ticks to a high of 127.47, but remain well below yesterday’s high of 128.28.

  • France aims to tighten fiscal policy by E60bln in 2025, with the 2024 budget deficit expected at 6.1% (PM Barnier said it would “exceed” 6.0% at his Parliamentary address yesterday).
  • Over two-thirds of this tightening will come from spending cuts, with just under E20bln of revenue being raised from temporary taxes on wealthy individuals/corporations (also in line with Barnier’s remarks yesterday)
  • The full budget will be presented on Oct 10.
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The 10-year OAT/Bund spread tightens 2bps to 77bps as more details of French fiscal tightening plans emerge. OAT futures gained some ~20 ticks to a high of 127.47, but remain well below yesterday’s high of 128.28.

  • France aims to tighten fiscal policy by E60bln in 2025, with the 2024 budget deficit expected at 6.1% (PM Barnier said it would “exceed” 6.0% at his Parliamentary address yesterday).
  • Over two-thirds of this tightening will come from spending cuts, with just under E20bln of revenue being raised from temporary taxes on wealthy individuals/corporations (also in line with Barnier’s remarks yesterday)
  • The full budget will be presented on Oct 10.