French central bank chief says rising long-term bond yields driven by increased supply and inflation expectations
Macro
François Villeroy de Galhau, a member of the European Central Bank's Governing Council and Governor of the Bank of France, said on the 15th that the current rise in long-term bond yields is being driven by increased supply from governments and companies and by expectations of higher inflation. Speaking at a press conference in Paris, he noted that despite the rise in yields, the French Finance Ministry is not struggling to raise funds in recent government bond auctions. He stressed that, given current market conditions, governments need to reduce fiscal deficits in a credible manner.
