The French Government auctioned today almost 8 billion euros of bonds with different maturities, producing higher yields accompanied with strong demand, reflecting that investors have faith in France and don't doubt that the nation might fall any time soon unlike Spain which might follow other indebted nations into deep crisis.
France sold precisely 7.973 billion euros of bonds maturing in 2014, 2015 and 2017, within the targeted range of (7-8) billion euros. Starting with the short-term bonds, the treasury sold as much as 3.545 billion euros of debt maturing after two years, producing an average yield of 0.85% as demand was 2.286 times the quantity offered.
The second largest economy in the euro zone also sold 1.73 billion euros of 3-year bonds on an average yield of 1.06%, while the bid-to-cover ratio was 3.0 times the quantity offered. In addition, the nation auctioned 2.69 billion euros of bonds maturing in 2017, producing an average yield of 1.83%, while demand was 2.69 times the quantity offered.