The sentiment deteriorated further in the market today after France ran another downbeat auction following the one seen in Spain yesterday, where the French government sold approximately 8.44 billion euro of bonds with different maturities on higher yields and weaker demand
The French bonds saw less demand and higher borrowing costs after selling 8.44 billion euros of different maturities bonds, the thing that spread fears that instability in the debt market might return and therefore the debt crisis may worsen further.
France sold 1.31 billion euros of 5-year bonds on an average yield of 1.96%, up from the previous of 1.91% seen in March. Demand for these bonds fell to 3.3 times from the previous 4.1 times.
The Treasury also sold 4.319 billion euros of 10-year bonds, producing an average yield of 2.98%, compared with the previous of 2.91%. Demand inclined to 2.6 times from 2.2 times an auction in earlier.
The nation auctioned as well 1.575 billion euros of 14-year bills on an average yield of 3.46, up from 3.30% in March. Demand gained slightly to 2.4 times from 2.2 times. Finally, the government borrowed another 1.235 billion euros in terms of issuing bonds maturing in 2041, with an average yield standing at 3.79% and demand at 2.7 times.