Yes, France continues to be a concern. With the news that yields were spiking, you had to wonder if this is going to be another day of selling pressure that doesn’t let up.
To the rescue comes S&P! They re-affirmed the AAA rating for France as they well know that anything less will create a cascade of selling in the region’s bonds.
Is France really AAA? Probably not, but it is better for all market participants and the European region if we all think that it is…..