France raises €9 billion in a pair of bond auctions

PanARMENIAN.Net - France's medium-term borrowing costs fell, while long-term rates rose slightly in a pair of bond auctions that raised €9 billion ($11.6 billion), The Associated Press reports.

The interest rate - or yield - on May 16 largest issue for five-year bonds, fell to 1.72 percent from 1.83 percent the last time the product was sold. The yields demanded for long-term inflation-linked bonds rose but demand was robust.

France has occasionally seen its borrowing costs rise amid concerns over its ability to pay down its massive debt and rein in spending.

The auction was the first since President Francois Hollande took power. Some worry that the Socialist will scare off investors with his plans to restart growth partially through spending. Others expect him to be more moderate, and he has promised to offset any new expenditure.