MARKET OUTLOOK - France-Germany Government Bond Yield Spread Remains Steady

Forex - Following S&P Global Ratings' confirmation of France's AA- rating with a stable outlook, the 10-year French-German government bond or OAT-Bund yield spread is trading flat in early sessions. S&P stated, "Despite ongoing political uncertainty, we expect France to comply late with the EU's fiscal framework and to gradually consolidate its public finances in the medium term." Last week, concerns regarding political stability in France pushed the 10-year OAT-Bund yield spread intraday to 90 basis points, the highest level since 2012. The spread, which narrowed to around 80 basis points over the weekend, is currently trading with little change at 81.5 basis points.