(Bloomberg) -- France increased the amount of debt it plans to sell next week, in a sign of confidence that uncertainty unleashed by elections this month is dissipating.
The Paris-based Treasury on Friday said it will seek to raise as much as €11.5 billion ($12.5 billion) of notes with maturities of up to eight years through auctions. That’s up from €10.5 billion it sold last month.
The increase breaks a trend that started a month ago, when the Treasury started reducing the target size of its bond auctions. Markets were roiled by President Emmanuel Macron’s surprise call for a snap vote and borrowing costs were shooting higher at the time.
Anxiety in the market has since subsided, given neither the far-right nor left-wing scored a big enough victory to govern alone, a move that had raised the prospect of expansive fiscal policy.
The 10-year yield premium over safer German assets has narrowed to around 65 basis points, after rising to over 85 basis points at the end of June. That’s still above the average of around 40 basis points for the past five years.
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