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Hollande Loses Bond Market Love

French yields may rise as the economy stagnates and joblessness rises.

By Mark Deen and Anchalee Worrachate, Bloomberg | Updated on August 28, 2012

French President Francois Hollande’s honeymoon with bond investors may be ending as economic reality bites.

Hollande, who returned from a 15-day summer break last week, faces an economy that hasn’t grown in three quarters, rising joblessness, a ballooning trade deficit and the task of coming up with a plan in the next few weeks to plug a budget hole of more than 30 billion euros ($37 billion) for next year.

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