Markets tolerate French paralysis as long as yields stay high

The Assemblée nationale in Paris, the French parliament. Photo: Jarosław Baranowski/Wikimedia.
The Assemblée nationale in Paris, the French parliament. Photo: Jarosław Baranowski/Wikimedia.
France’s government is adrift after Bayrou’s resignation, yet its bonds still draw buyers. Investors point to global tailwinds and deep liquidity, but warn that if sentiment turns, France could be hit harder than its peers.
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