France Debt Demand Surges as Blue Owl Executes $1.4B Asset Sale

Group 1: French Inflation-Linked Debt - The Agence France Trésor reported strong investor demand for inflation-indexed government bonds, selling €300 million of 1.8% 2040 bonds at an average yield of 1.64% with a bid-to-cover ratio of 3.22x, indicating robust institutional interest in long-term inflation protection [2][10] - Additional tranches included €525 million of 0.6% 2034 bonds at a 1.18% yield and €670 million of 3.15% 2032 bonds at 0.86%, with consistently high bid-to-cover ratios across all maturities, reflecting confidence in French sovereign credit despite European economic uncertainties [3][10] Group 2: Blue Owl Capital - Blue Owl Capital has agreed to sell $1.4 billion in direct lending investments from three credit funds to North American pension and insurance investors, executed at 99.7% of face value [4][5][10] - The transaction aims to validate the firm's internal valuations and is intended to pay down debt while facilitating a significant return of capital to investors by the end of Q1 2026 [5][10] Group 3: UK Manufacturing - The CBI Industrial Trends Survey indicated a slight improvement in the UK manufacturing sector, with the Total Orders balance rising to -28 from -30, aligning with analyst expectations [6][10] - However, inflationary pressures persist, as the Selling Prices index reached 26, exceeding the estimated 23, suggesting manufacturers may continue to face elevated input costs [7][10] Group 4: Germany's F-35 Procurement - The German Government clarified that there are no current plans to purchase additional F-35 fighter jets beyond the existing order of 35 jets from Lockheed Martin, amid budget scrutiny and defense policy evaluations [8][9][10] - The existing order remains on track for delivery starting later this year, as Germany modernizes its air force to meet NATO commitments [9][10]