For the first time since June 2020, the interest rate on French ten-year debt has returned to positive, after having fallen to -0.38% last December.

With this rise, also seen in other countries, is pushing investors to shift away from stocks for government bonds.

The interest rate on French ten-year debt returned Thursday to positive territory for the first time since June 2020, reflecting inflationary fears still keen in the United States, despite the reassuring remarks of the President of the Fed.

The ten-year rate on the French secondary market, the "second-hand" market where debt already issued by states is exchanged between investors, rose to 0.014% around 12:40, according to financial data provider Bloomberg.

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"Period of uncertainty"

This is the first time since June 10, 2020 that this benchmark deadline, closely watched for international comparisons, has moved above the symbolic bar of 0%.

It had fallen to its lowest at the close of -0.38% on December 11.

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Rates were also tight on an international scale: the "Bund", the German ten-year rate, benchmark in the euro zone, was moving at -0.25%, a level not seen since the end of March 2020, while the American rate rose to 'at 1.44%, a new high for a year.

"The market remains in a period of uncertainty," comments Christopher Dembik, associate director at Berenberg, observing that a further rise in the US rate above the psychological threshold of 1.50% could trigger a fall in stocks.

The rise in rates on the bond markets encourages investors to shed stocks and acquire government bonds, which have become more profitable.

Avoid a debt crisis

Interest rates in developed countries have plunged since last year due to the massive public debt buyback programs of central banks, mainly American and European, in order to support States which have to borrow heavily in times of economic crisis linked to the Covid-19 pandemic.

These support programs made it possible not to see the borrowing rates demanded by investors soar when public debts rose sharply everywhere in Europe, exceeding 116% for France, and thus made it possible to avoid a sovereign debt crisis as at the turn of the 2010s.