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Finnish bonds underperform euro zone peers as government falters
June 12, 2017 / 12:48 PM / in 4 months

Finnish bonds underperform euro zone peers as government falters

LONDON, June 12 (Reuters) - The premium investors demand for holding Finnish government bonds over German peers was at its highest in almost three weeks on Monday after Finland’s Prime Minister took steps to bring down his coalition government.

Finnish three-party rule will not continue in its current make-up following leadership change in co-ruling nationalist Finns party, Prime Minister Juha Sipila said.

Finland’s 10-year government bond yield nudged 0.5 basis points higher to 0.33 percent, bucking a broad move lower in euro zone bond yields. That pushed the gap over benchmark German Bund yields to around 7.5 basis points, its widest in almost three weeks. (Reporting by Dhara Ranasinghe; Editing by John Geddie)

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