The French bond market is the rock star Thursday: The 10-year government bond yield there tumbled by 20bps to 2.538% and earlier fell as low as 2.5%, its lowest since Sept. It is notable that since Hollande's victory, the yield has dropped from 2.94% on election day and is moving further away from a peak of 3.7% in November. The rally is driven by better value in France, with German bund yields having hit recent record lows. Another boost, according to some analysts, came from reports from French newspapers that limits on a kind of savings accounts will be increased. "This is a popular savings account that is tax free and linked to French inflation rates," says David Keeble, head of fixed-income strategy at Credit Agricole. "It means more deposits in banks -- not bad when people are concerned by bank runs around Europe,"
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