France's bond drama takes centre stage ahead of ECB rate decision

AI Summary

A sell-off in French government bonds is tightening borrowing conditions across the eurozone ahead of the European Central Bank’s rate decision. The ECB is expected to hold rates, while President Christine Lagarde has said France must take the first steps to address its debt problems.

The European Central Bank is expected to hold rates next week as France's bond sell-off tightens borrowing conditions across the eurozone, while ECB President Christine Lagarde has made clear that the first steps to tackle French debt woes must come from Paris, not Frankfurt.