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Yuxin: The upcoming vote of no confidence may further weaken the French debt.
Jinshi data, December 4th news, analysts at Yu Xin Bank said in a report that investors took a constructive attitude towards French government bonds on Tuesday, Buy the Dips, but it may soften further. The government crisis will open a highly uncertain period, which may bring additional pressure to French bonds. If the government survives the vote, a small Rebound is expected. This may reduce the yield spread between US Treasuries and German Bunds to below 80 basis points. However, the political uncertainty will not be eliminated, and the government remains fundamentally fragile.