{"id":25510,"date":"2011-11-22T12:10:48","date_gmt":"2011-11-22T17:10:48","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=25510"},"modified":"2011-11-22T12:10:48","modified_gmt":"2011-11-22T17:10:48","slug":"frances-triple-a-rating-in-jeopardy","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/11\/22\/frances-triple-a-rating-in-jeopardy\/","title":{"rendered":"France\u2019s Triple A Rating in Jeopardy"},"content":{"rendered":"<p>As yield rates for France\u2019s sovereign debt climbs to levels most analysts feel to be unsustainable, the country\u2019s <a href=\"http:\/\/forexblog.oanda.com\/20111121\/moodys-warns-frances-aaa-credit-rating-at-risk\/\" target=\"_blank\">triple A credit rating<\/a> is firmly in the sights of the major ratings agencies. 10-year French government bonds rose to 3.5 percent as investors demanded an extra premium for the greater risk now associated with French debt.<\/p>\n<p>The <a href=\"http:\/\/forexblog.oanda.com\/20111116\/france-calls-for-ecb-intervention-as-bond-yields-rise\/\" target=\"_blank\">yield spread<\/a> between 10-year French bonds and the benchmark German rate rose to 158 basis points.<\/p>\n<p>In mid-day trading today, the extra yield demanded by investors for 10-year bonds rose to 158 basis points over the benchmark German rate. With yield spreads also widening in other triple-A economies including Austria and the Netherlands, it is evident that the debt crisis is penetrating the very core of the Eurozone.<\/p>\n<p>Of the top-tier countries, France has the greatest debt burden with a debt-to-GDP ratio of 85 percent. It is also estimated that French banks have the greatest overall exposure to the Eurozone\u2019s most indebted nations with just over $900 billion according to the Bank for International Settlements.<\/p>\n<p><a href=\"http:\/\/forexblog.oanda.com\/bios\/\">Scott Boyd<\/a> is a currency analyst and a regular contributor to the <a href=\"http:\/\/forexblog.oanda.com\/\">OANDA MarketPulse FX blog<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As yield rates for France\u2019s sovereign debt climbs to levels most analysts feel to be unsustainable, the country\u2019s triple A credit rating is firmly in the sights of the major ratings agencies. 10-year French government bonds rose to 3.5 percent as investors demanded an extra premium for the greater risk now associated with French debt. &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2011\/11\/22\/frances-triple-a-rating-in-jeopardy\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;France\u2019s Triple A Rating in Jeopardy&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-25510","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/25510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=25510"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/25510\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=25510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=25510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=25510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}