The risk in the French bond market has further declined as the budget proposal is expected to reach a consensus.

On December 6th, Jin10 Data reported that French government bonds have been pumping for the fourth consecutive day, pushing the country’s bond risk premium to the lowest level in more than two weeks, as the market speculates that the French parliament will eventually reach a consensus on the budget. The yield on France’s 10-year government bond fell by 4 basis points to 2.85%. On Thursday, far-right leader Le Pen said that as long as the next Prime Minister is willing to slow down the deficit reduction, the budget may be submitted within a few weeks. BNP Paribas’ Interest Rate strategist Benoit Gerard said it appears that Le Pen is a force driving the French bond market these days.