Eurozone government bond yield spreads continued to widen this week, driven by the French OAT-German Bund yield spread and supply pressure, Societe Generale rates strategists say. Supply pressure arises from France's 14 billion euro auction of long-dated OATs on Thursday. However, with supply set to fade into the summer, there is room for narrower spreads near term, they say. "If summer seasonality is at play, we should see some tightening in the coming weeks." Beyond that, markets are likely to refocus on fiscal dynamics, foreign flows and French political risk, the strategists say. "We expect OATs to underperform [Italian] BTPs and Spanish government bonds amid renewed political stress." The 10-year OAT-Bund yield spread is 77 basis points, according to Tradeweb. (emese.bartha@wsj.com)