Le Pen’s Rise Sets Up French Debt Market for Years of Pain (2)

Bond investors are set to impose a higher interest rate on French government borrowing for years, in a regime change that could have far reaching consequences for Europe’s second largest economy.

Even if <-bsp-person state="{"_id":"00000190-45bd-d497-a7fb-edbd85260000","_type":"00000160-6f41-dae1-adf0-6ff519590003"}">Marine Le Pen’s National Rally falls short of an outright majority in the upcoming vote, Zurich Insurance Company and Neuberger Berman say the market will continue to demand a higher yield to buy French debt. Others, including Societe Generale SA anticipate the political uncertainty that has weighed on bonds will persist until the 2027 presidential election.

Since President <-bsp-person state="{"_id":"00000190-45bd-d497-a7fb-edbd85290000","_type":"00000160-6f41-dae1-adf0-6ff519590003"}">Emmanuel Macron called a snap vote earlier this ...