
The sudden increase in yields unsettles investors. On the foreign exchange market, the euro temporarily fell to its lowest level in 17 months.
AI-generated summary
On the bond markets, the situation in France is causing rising yields and uncertainty among investors.
Frankfurt. The flight reflex continues to take effect. The foreign exchange market clearly shows how much the sudden rise in yields has disturbed investors. As a result of the French shock on the bond markets, the euro temporarily fell to its lowest level in 17 months compared to the dollar. Even days later, the common currency can hardly recover because investors are avoiding the euro.
Parallels to the 2011/12 Euro crisis are already being discussed in the markets. At that time, the situation continued to worsen for months. Only a word of power from Mario Draghi, President of the European Central Bank (ECB), was able to reassure investors.
“The collapse of the single currency seemed possible at the time, and today a sense of crisis is building in the bond market,” warns Mark Dowding, investment strategist at asset manager RBC Bluebay.
Eckhard Schulte from Mainsky Asset Management sees a crucial difference from back then: “Today there is no Mario Draghi.” That's why he also sees danger for the euro and fears that the ECB will have to intervene sooner or later to stabilize the situation.
AI outlook — possibilities, not facts
ECB has to intervene sooner or later to stabilize the situation.
Possible · Within months

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