France Sees Solid Demand, Higher Rate In Bond Sale

Published January 5, 2012 10:36AM (EST)

PARIS (AP) — France has raised euro7.96 billion ($10.31 billion) in a bond auction with solid demand but was forced to pay slightly higher interest rates than at the last such sale.

Most of the bonds sold Thursday were 10-year notes, which markets eye as a benchmark of investor confidence. Demand surpassed the supply but was considerably less than at the last auction in December. Investors asked for an interest rate of 3.29 percent to lend France euro4.02 billion in 10-year money, up from 3.18 percent in December.

Twelve-year, 24-year and 30-year bonds were also sold with healthy demand.

Investors were closely watching the auction because of concerns that Europe's financial crisis could spread to core countries like France.


By Salon Staff

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