Goldman Sachs short 5Y French bond Position from August 20 still in play. The position opened at 0.96%, with an initial target of 1.5%,  and a stop on a close below 0.70%, now at 0.98%.

Goldman's rationale behind this call has been mainly to play the potential ECB intervention in the peripheral bonds which Goldman expects to have a more lasting impact ensuring that the Euro area will rest on a more solid macro structure.

That in turn will lead to an increase in the yields on the French bonds as risk sentiment turns less negative on Spain, Italy.