French 10-Year Bond Yield Surpasses 5% Amid Debt Concerns and Social Unrest
| Pair | Now | Since publish |
|---|---|---|
| EURUSD | — | — |
- French 10-year bond yield crosses 5% for first time since 2002.
- Driven by 119% GDP debt, social unrest, and budget struggles.
- Market fears of a credit crisis and rising risk premium for French debt.
France’s benchmark 10-year government bond yield surged past the 5% mark on Wednesday, reaching levels not seen since 2002, and continued to rise on Thursday to 5.089%. This increase is attributed to escalating investor concerns over the nation’s ballooning debt, which stood at EUR 3.596 trillion or 119% of GDP in the second quarter. Widespread civil unrest and the government’s struggle to pass a federal budget have further fueled market anxieties, leading to fears of a potential credit crisis and impacting the Euro’s recent recovery. The spread between French and German 10-year borrowing costs also widened to its highest in nearly 15 years, signaling an increased risk premium for French debt. French borrowing costs have now surpassed those of the US.