Sumitomo Mitsui DS Asset Management unwound its position in French government bonds due to worries on the country's fiscal conditions, Bloomberg News reported Friday.

The move came after a rise in the risk premium for euro-area government bonds on Thursday due to contagion fears from France's debt challenges that prompted its government to push for a smaller budget deficit, the report said.

The asset manager moved to safer havens including German and short-term Japanese government bonds, the news outlet said.

The Sumitomo Mitsui Financial Group (TYO:8316) arm did not immediately respond to MT Newswires' request for comment.

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