MNI Fixed Income Analysis: Foreign Holdings Of French Debt
Dec-11 12:20By: Emil Lundh
France+ 1
Executive Summary
Foreign investors have been an important source of demand for French general government debt over the past 20 years.
- Data up to Q2 2024 suggests foreign demand has remained largely resilient over the past few years.
- However, renewed political and fiscal uncertainty following the collapse of Michel Barnier’s minority government raises concerns about whether foreigners will continue to show appetite for French debt into next year, particularly with the ECB’s balance sheet reduction also set to gather pace.
- This analysis piece sketches out key compositional changes in French debt from 2004 to Q2 2024, using data from the IMF (Arslanalp and Tsuda, 2014, updated) and the ECB.
SEE HERE FOR THE FULL PUBLICATION: MNI Holders of OATs 241211.pdf
