Twelve Charts This Week - 6/21/2024

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French sovereign yields expanded in the past two weeks after President Macron dissolved the Assemblée Nationale. France faces a difficult fiscal situation and rising deficits, much like the United States. France estimates that the widening spreads vs. the German bund will cost it an additional €800 million if they persist for a year. But WHO HOLDS FRANCE’S DEBT? This chart from Gavekal provides the answer. French institutions appear to hold about 19%, residents (presumably French households for the most part) hold 28%, and non-resident investors 53%. The last is more than double the 24% of US debt that is held by foreigners, but many “non-resident investors” in French bonds are institutions or parties in other Eurozone countries that share the same central bank and currency. (via @Gavekal)

🚨 Could be impacted by this: French sovereign yields, French budget deficit, Euro exchange rate, French politics, election outcomes, French economy, political stability.