This morning the first appointment of the Oat, the French government bonds, with the market, a few days after Standard & Poor's rejection of Paris sovereign debt, doing very well: the demand for the auction was very high (more than twice the available offer) and yields fell sharply .
7,965 billion euros were placed: 2,56 at 2 years, 1,57 at 3 years and 3,43 at 4 years. Yields went from 1,58 last October to 1,05% in the first case and from 2,44 to 1,51 in the second. But particularly encouraging was the reduction in rates for four-year OATs, which fell from 2,82% to 1,88%.
The market seems to be snubbing the loss of triple A by France, decreed by S&P, but it is also true that banks have plenty of liquidity to use for investments in government bonds in the euro area, after the ECB's mega-loan of 489 billion at the end of December.
