FRENCH DEBT RISK PREMIUM REACHES EUROZONE SOVEREIGN CRISIS LEVELS

What happened: The premium investors demand to hold French government debt over German Bunds widened to its highest level in 15 years on Thursday, as concerns about France's strained public finances and ongoing street protests weighed on sentiment. Key numbers: France's 10-year yield rose 6.5 bps to 5.06%, after touching 5.1415%, its Why it matters: Nomura's Andrzej Szczepaniak said the bar for ECB intervention is very high and conditions would have to worsen a lot from a contagion perspective. Citi's Giada Giani said re-emerging euroscepticism is a constraint on a European response.

The premium investors demand to hold French government debt over German Bunds widened to its highest level in 15 years on Thursday, as concerns about France's strained public finances and ongoing street protests weighed on sentiment.

Nomura's Andrzej Szczepaniak said the bar for ECB intervention is very high and conditions would have to worsen a lot from a contagion perspective. Citi's Giada Giani said re-emerging euroscepticism is a constraint on a European response.