Bad news for "
whatever the cost
".
The money "free" until now to finance the debt of the French State is paying again.
A symbol: the French ten-year OAT rate, which went into negative territory for the first time in 2019, turned positive again, for the first time since June 2020. It was listed at 0.025% Thursday afternoon.
That of Austrian government bonds also turned positive.
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Only those of the Netherlands and Germany remain in negative.
The German Bund, a benchmark in the euro zone, reached -0.22%, close to its highest levels since the end of March 2020, in the midst of a crash at the start of the pandemic.
The Italian ten-year rate saw the “Draghi effect” fade back to 0.82%, its level last October, which affected a new issue of Rome government bonds.
This movement is driven by the soaring of American rates, to 1.48% for the ten years, to the highest for a year, in anticipation of the massive injection of public money (1900 billion dollars) that President Joe Biden is preparing to have the House of Representatives vote on Friday.
The markets fear that the US economy will overheat, which could cause inflation to jump.
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Attempts by central bankers, Christine Lagarde at the ECB and Jay Powell at the Fed, to reassure, have hardly appeased the nervousness.
The members of the Governing Council of the ECB multiply the speeches promising the continuation of ample monetary support.
They will have to take action soon.
"
An excessively sharp increase in real interest rates due to the improved outlook for global growth could jeopardize the economic recovery,"
said Isabel Schnabel, member of the ECB's executive board.
The big European financiers may repeat that the inflation risk remains limited in a Europe still plagued by restrictions, the fears do not dissipate.
