French industrial production came in considerably lower than expected overnight. France's output fell 2.5% YoY against an expectation of a mere 1.4% drop and manufacturing production dropped 4.9% YoY - almost its worst since the crisis. This data confirms what we have discussed in detail (here [5] and here [6]) that France is heading for a depression. After the briefest of renaissances in Q3 2012, the Gallic nation now looks set for a triple-dip recession, further stretching the core of an already tense European Union. The last few days have seen 10Y French debt yields increase a little (+17bps off the lows) but they remain (much as the rest of Europe) near record lows.
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Charts: Bloomberg