Rabobank Says French Spread Widening May Be Over as ECB TPI Support Remains Conditional
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Rabobank Senior Economist Maartje Wijffelaars says most of the recent widening in French spreads may be over, arguing that France is seen as too big to fail and that European Central Bank tools exist to contain stress. Wijffelaars notes that 38% of French high-grade corporate debt now yields less than government bonds. She outlines the ECB's conditionality for its Transmission Protection Instrument and stresses France's need for a credible budget.