Paris plans to issue new 30-yr bond

Paris plans to issue new 30-yr bond

Bloomberg
The government may auction the fixed-rate bond "in coming weeks or months," Philippe Mills, the chief executive officer of Agence France Tresor, said in an interview in Paris.

It’s also considering selling an inflation-linked security maturing in 10 to 30 years "very likely before the end of the year" and a new 10-year note "possibly in July," he said.

France is seeking to raise an unprecedented 155 billion euros ($216 billion) of notes and bonds this year to help revive Europe’s third-largest economy. At the same time, aging populations are fueling demand among insurers and pension funds for longer-dated securities as they seek to lengthen the maturities of their investments.

"The increase in issuance volumes is taking place in favorable conditions," Mills said. "We have to ... stick with public finance policies that underpin economic activity. We’re paying attention to the rating quality of France and keeping public finances under control."

The economy of France, which has the top AAA credit rating, contracted for the past four quarters, curbing government revenue and boosting welfare expenditure as the number of people seeking jobs reached a three-year high.