-- France has announced plans to sell €300 billion in government bonds next year to finance its budget, following months of political turmoil.Should Evictions Be Banned After Hurricanes and Climate Disasters?
“It sounds wise to have respected the €300 billion threshold,” said Hadrien Camatte, a senior economist at Natixis, referring to the level that was expected by market analysts. While analysts from banks including Societe Generale SA, Danske Bank A/S and Citigroup Inc expected France to sell more bonds next year given the higher volume of notes maturing, the figure confirms an upward trend in borrowing. The target, which includes medium- and long-term notes net of buybacks, is about €100 billion larger than before the pandemic.Other European countries, in the meantime, are seen reducing issuance next year.
Reinout De Bock, head of European rates strategy at UBS Group AG, said higher debt issuance targets were unlikely to weigh on French bonds given that was expected. Also the larger volume of redemptions means the net supply won’t be as heavy, he added. Wall Street's biggest banks expect the Federal Reserve to end the process of shrinking its balance sheet next April, holding the line relative to what they told the central bank in July. The banks also expect the Fed's balance sheet to bottom out at $6.4 trillion, well above the $4.