The focus in Europe is on France this morning, with investors questioning France’s AAA credit rating even without the prodding of ratings agencies.Yields on 10 year French bonds have been rising steadily all day, hitting 3.55% around 6:45 AM ET.
Fears that France’s rating will soon be slashed are not unwarranted—Moody’s recently warned France that it could soon be put on downgrade review if economic conditions continue to deteriorate. At the same time, the government says it won’t cut jobs, which doesn’t bode well for assessments of its fiscal policy.
Elsewhere in Europe:
– The debate between Germany and the rest of the eurozone is intensifying, with Eurogroup President Jean-Claude Juncker backing consideration of controversial eurobonds. He joins a chorus of scholars, investors, and EU leaders demanding that the EU leaders move forward with that idea.
– Former European Central Bank member and new Greek PM Lukas Papademos has jumped on board the eurobond bandwagon (via ForexLive). That’s a big deal, since the ECB has been highly opposed to such measures.
– Greece will probably default in 20 days if it doesn’t receive the next tranche of troika aid, according to Dow Jones. That disbursement is contingent on a successful vote on its 2012 budget, scheduled to take place next month.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.