France raised €8.4 billion in an auction of medium and long-term debt today, with rates climbing moderately amid strong demand.
In the fourth placement of medium and long-term debt this year, the rate of return it paid to raise 10-year funding rose to 2.98% from 2.91% on March 1.
The rate of return paid on five-year and 14-year bonds also rose modestly, while that on 39-year bonds dipped.
Spain was forced to pay sharply higher rates at a bond auction yesterday, its first sale since a tough austerity budget last week, in a sign of fresh concerns over its ability to bring its strained finances under control.
That concern rippled through the heavily indebted euro zone, with France seeing a sharp rise in its short-term borrowing rates.
