Markets tolerate French paralysis as long as yields stay high
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.
Foreign investors dump Treasuries
Several countries drastically reduced their exposure to US government bonds in March. Treasuries worth $256.6 billion were sold, according to data published by the US Treasury.
According to analysts, the outflow was mainly driven by the fact that a number of emerging countries needed the money to support their own currency. The most important sellers were Saudi Arabia, Brazil and India. Saudi Arabia sold the most with $25.3 billion, but still owns $159 billion worth of Treasuries.