France to sell up to EUR 12.00 bln bonds on Jul. 03

France to sell up to EUR 12.00 bln bonds on Jul. 03

France is set to issue up to EUR 12.00 billion in bonds on July 3, 2025. This issuance is part of the country's ongoing efforts to manage its debt and finance public expenditures. The bond sale is expected to attract significant investor interest, given the favorable market conditions and the recent easing of geopolitical tensions.

The announcement comes amidst a period of market optimism following the ceasefire agreement between Israel and Iran. The relief rally has boosted the Euro, with the EUR/USD pair reaching levels right above 1.1600, close to its year-to-date high of 1.1630 [1]. The sharp decline in oil prices, which is providing additional support to the Euro, is also expected to benefit France's bond issuance.

The French government's decision to issue bonds at this time is strategic, as it aligns with the broader economic recovery and the country's fiscal plans. The issuance is also likely to be influenced by the recent changes in tax legislation aimed at curbing dividend arbitrage strategies, such as Cum-Cum, which have faced legal challenges [2].

Investors are closely watching the bond sale, with expectations that the issuance will be well-received, given the current market sentiment and the favorable economic outlook. The French government's ability to issue bonds at favorable terms is a testament to the country's strong fiscal position and the confidence investors have in its economic prospects.

References:
[1] https://www.fxstreet.com/news/eur-usd-jumps-near-ytd-highs-after-trump-announces-a-complete-iran-israel-ceasefire-202506240800
[2] https://news.bloomberglaw.com/daily-tax-report-international/french-finance-ministry-dividend-tax-interpretation-faces-appeal