#FrenchBondYields24YHigh

About FrenchBondYields24YHigh

France’s 10-year bond yield hit 5.14% Oct 22, its highest since 2002; the spread over German bonds widened to ~175 bps. Fiscal deficits, budget gridlock and political uncertainty pushed funding costs higher. Some European sovereign spreads and bank credit risk indicators also widened, while German and US yields fell amid safe-haven demand. Pressure remains mainly in Europe. Ratings, budget talks and bank funding will help assess whether risks spread to other bond markets and global finance.