After S&P confirmed France's rating and outlook, the yield spread between French and German 10-year government bonds stabilized.

On December 2nd, Jinshi data reported that after the rating agency Standard & Poor’s confirmed France’s AA- rating and stable outlook, the yield spread of the 10-year French-German bond remained flat in early trading. “Despite the continued political uncertainty, we expect France to comply with the EU fiscal framework and gradually consolidate public finances in the medium term,” the rating agency said in its evaluation report. Last week, renewed concerns about political stability in France pushed the 10-year French-German bond yield spread to 90 basis points, the highest level since 2012. Before the weekend, the spread narrowed to around 80 basis points, and is currently stable at around 81.5 basis points.