Negative Yields on 3 and 6-Month French Debt (EWQ)

July 9, 2012 1:54 PM EDT
For the first time, France's government sold short-term bonds at negative interest rates. On Monday, the treasury announced they sold three-month bonds at -0.005 percent, and six-month bonds at -0.006 percent. France's growth prospects for the year are expected to be flat, but France is considered a relatively safe place for jittery investors to park cash.

Meanwhile, 10-year bonds in Spain are trading back above 7 percent. The divergence between longer dated Spanish debt and shorter dated French debt is an ominous start for the week in Europe.

Shares on the CAC 40 closed lower by 0.38 percent today. iShares MSCI France Index ETF (NYSE: EWQ) is trading lower by 0.16 percent.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

ETFs, Forex

Add Your Comment