France’s 24-Year Yield High Puts European Banks’ Sovereign Exposure in Focus
Photo: TokenPost
France’s 10-year government bond yield climbed to a 24-year peak on Oct. 22, putting the scale and accounting treatment of European banks’ sovereign holdings in focus as bond prices came under pressure. At 11:30 a.m. ET (15:30 UTC), the French 10-year government bond yield reached 5.07%. Government bonds serve banks as investments and as liquid assets they can use to support funding, but their market prices generally fall when yields rise. EU/EEA banks held €4.540 trillion in gross sovereign exposures as of June 30. After short positions were deducted, direct exposure stood at €4.327 trillion.
Source: TokenPost
