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France sells one-year paper at record low yield
July 2, 2012 / 1:33 PM / in 5 years

France sells one-year paper at record low yield

PARIS, July 2 (Reuters) - France sold a 51-week Treasury bill at a record low yield at a short-term debt auction on Monday, indicating high demand despite a recovery in investor appetite for riskier assets as concerns about the euro zone’s debt crisis ease.

France has seen borrowing costs fall in recent weeks to historic lows as investors seek the relative safety of French debt with the promise of richer yields than offered on German bonds.

Debt management agency Agence France Tresor said it sold 8.289 billion euros of bills, known as BTFs, on Monday, at the top end of its 7.0-8.3 billion euro target range.

The AFT sold 1.796 billion euros of the 51-week paper at a record low yield of 0.163 percent, down from 0.177 percent at a previous auction last Monday. Demand was strong with investors putting in bids for more than twice the amount on offer. Yields were also lower on two shorter-maturity bills on sale.

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