French Yields Fall Most in 20 Years on EU Optimism

Relief swept over the European bond market on Thursday, with French yields falling the most since 1991. The nation sold 4.3 billion euros ($5.79 billion) in bonds due between 2017 and 2041 according to Bloomberg data. Bond prices also rose in Italy and Spain, with Italy's 10-year yield fell below 7%. The French 10-year yield plunged 27 basis points or 0.27% to 3.12%. Meanwhile, ten-year Spanish yields fell 51 basis points to 5.72%, which is the lowest since November 9, according to Bloomberg. Economists are also expecting that ECB policymakers will cut interest rates by a quarter-point when they meet on December 8, which should help sentiment.