France bonds (Oat, Btf) are government bonds issued by the French Ministry of Economy and Finance as part of the French public debt refinancing programs. These bonds are to all intents and purposes debt securities placed periodically by the treasury with local and foreign investors to cover the state’s needs and can be short, medium and long term, with a fixed or variable rate based on inflation.
The purchase of French government bonds can be carried out on the primary market through a public auction held by the government or on the secondary market through access to official domestic or international markets. The bonds bear interest which is paid periodically to the holder, while upon the natural maturity of the bond the state reimburses the capital.
The bonds issued by a state that enjoys full financial autonomy and uses its own currency are also called "sovereign" or "governmental" bonds, they can be issued in euros or in a valuable international currency. Their performance depends on the health of the country’s economy and the currency of denomination at a given historical moment. France currently enjoys high credit ratings from international rating agencies and consequently French government bonds offer returns commensurate with the country’s risk profile.
