France raises $9.4 billion at bond auction

AP News
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Posted: Nov 17, 2011 7:23 AM
France raises $9.4 billion at bond auction

France raised euro6.98 billion ($9.41 billion) at an auction of two and five year bonds amid strong demand but it was forced to pay higher interest rates than in the previous auction last month.

The French treasury said Thursday the rate on its two-year bonds maturing on Sept. 25, 2013, rose to 1.85 percent, up from 1.31 percent at the last comparable auction in October.

The interest rate on five-year bonds maturing in July, 2016, rose to 2.82 percent, up from 2.31 percent at the last auction.

On the secondary market, yields on France's 10-year bonds stood at 3.78 percent, as their spread over similar German bonds widened to nearly two percentage points amid investor flight to safer investments.