French government bonds are being sold off due to the political crisis, with some Japanese investors seeing it as a good buying opportunity.

French government bonds are facing selling pressure due to the risk of the Beru government collapsing, but some Japanese investors see it as a buying opportunity. Fivestar Asset Management and Nissay Asset Management believe that this recent decline may provide a window for Japanese investors to deploy investments in the third largest overseas investment destination. They mention reasons including the spread of French 10-year government bond yields relative to German yields reaching their highest level since April. "As the yield spread widens with German government bonds, we are actively looking for opportunities to buy French government bonds," said Eiichiro Miura, Senior Investment Manager at Nissay's Strategic Investment Department, and mentioned that there may be a compromise in the French government.