Robust eurobond sale for France

France drew strong demand for its sale of €9bn (£7.6bn) worth of conventional bonds yesterday, particularly for the shorter-dated debt where investors recently elevated yields. It also sold €3bn of inflation-linked bonds, the top end of the target range, which were well-received, reflecting investors’ appetite for inflation protection, which has risen after Eurozone inflation jumped to 2.2 per cent last month. The 10-year French/German bond yield spread held steady around 36 basis points after the auction and was unchanged from levels seen at the previous settlement close.