LONDON, Sept 5 (Reuters) - French government debt prices

ticked higher along with bank stocks and the euro on Thursday

after President Emmanuel Macron appointed Michel Barnier, the

European Union's former Brexit negotiator, as his new prime

minister.

The yield on France's 10-year bond, which moves

inversely to the price, fell 3 basis points (bps) to trade flat

on the day at 2.93% after the announcement, indicating moderate

relief among investors.

The risk premium investors demand to hold French debt over

Germany, fell slightly to 69 bps, the lowest since Aug. 27. It

surged briefly in June to 85 bps, its highest since 2012,

following Macron's decision to call a shock snap election.

The euro touched a session high at $1.1108 on the

news, and was last trading 0.12% higher. French banks also

touched session highs, while the benchmark CAC stock index

ticked up but remained lower on the day.