Bercy performs huge on the markets | EUROtoday

On Jan 4, 2025

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Nnew yr, and nice begin for France’s financing program. Agence France Trésor (AFT), the division of the Ministry of the Economy and Finance, whose mission is to put and handle the State debt, begins its points for 2025 this Monday, January 6. On this system, a primary public sale of BTFs (Treasury Bonds), short-term debt securities, at 2:50 p.m. This might be adopted, from Thursday, by long-term OATs (Assimilable Treasury Bonds). time period.

This jargon could seem obscure to the uninitiated. But, on the flooring of the Colbert constructing, in Bercy, the fifty brokers positioned beneath the authority of Director General Antoine Deruennes nonetheless occupy an important position within the functioning of the State: they have to be sure that it doesn’t is not going to discover itself wanting money, by promoting debt securities to buyers at the very best value. A job that may undoubtedly put them beneath a bit of extra strain in 2025 than in earlier years.

300 billion

Never has the context been so explicit for this group created in 2001. With the autumn of the Barnier authorities and the absence of a funds voted for 2025, the AFT finds itself in a extra sophisticated place than in earlier years. The particular regulation adopted urgently after the vote on the movement of censure final December will, in fact, permit the State to proceed to borrow on the markets to finance itself, and due to this fact permit the AFT to do its job. The quantity deliberate for the second has not modified: France ought to borrow 300 billion this yr to finance itself, in comparison with 285 final yr. But this quantity isn’t set in stone. “The financing requirement is likely to be adjusted, if necessary, according to the finance law for 2025,” mentioned the AFT in a press launch.

In any case, it could be a historic file. According to calculations carried out by Natixis, France would even turn out to be the main issuer of debt within the euro zone (1 / 4 of the whole), thus stealing this unhappy gold medal from Italy… At a time when buyers are beginning to be cautious of little extra concerning the French scenario. Since the dissolution, the unfold, that’s to say the distinction in charges between France and Germany, has continued to widen. At the beginning of the yr, it nonetheless exceeds 80 foundation factors, twice as a lot as in January 2024. Political instability and the shortage of visibility on the trajectory of our public funds are inflicting concern on the markets.

Predictability, regularity and suppleness

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Kangaroo of the day

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That mentioned, AFT has stable backing, and French debt stays a sought-after product. “We will continue to rely on the same principles that have made us successful: predictability, we have a schedule that we announce before the start of the year and we stick to it, regularity, with broadcasts every week for BTFs and every 15 days for OATs, and flexibility, every week, before each auction, we adapt the offer of securities to the demand expressed at that time: the objective is to have instruments liquid, that is to say that investors can sell or buy these securities easily in large quantities,” defined Antoine Deruennes, basic director of the AFT, at a press convention in December.

This needs to be sufficient to save lots of us from violent chapter throughout the yr. “I do under no circumstances envisage a panic situation, that’s to say that of a debt concern the place demand could be inadequate, even when sure buyers, particularly Asians, are extra reluctant, as a result of others are there to take over, analyzes Christopher Dembik, financial advisor to the administration firm Pictet AM. But the financing price is more likely to be greater. » The entire problem for market operators and AFT analysts will due to this fact be to do the utmost to proceed to promote our debt at the very best value. Last yr, they succeeded: the 2024 points have been carried out at a median rate of interest barely decrease than in 2023: 3.06% after 3.16%.

https://www.lepoint.fr/economie/dette-bercy-joue-gros-sur-les-marches-03-01-2025-2579148_28.php