French 10-year yield set for biggest quarterly jump since 1987
France’s borrowing costs rose as debt reached 119% of GDP, while the Franco-German spread hit its highest level in 14 years, officials said.
- France's 10-year borrowing rate climbed to 4.94% on Thursday, reflecting investor mistrust as yields reached levels unseen since 2002 when rates hit 4.91%.
- Prime Minister Lecornu faces mounting pressure as public debt reaches €3.596 trillion, equivalent to 119% of GDP, with political maneuvering ahead of next year's presidential election complicating deficit reduction efforts.
- ING economist Charlotte de Montpellier warned that "higher interest rates are therefore becoming a source of fiscal deterioration," as the Franco-German spread reached its highest level in 14 years.
- European Central Bank President Christine Lagarde rejected a proposal by Jean-Luc Mélenchon to cancel ECB-held bonds, calling it a "clear and simple violation" of European treaties that would damage France's future borrowing capacity.
- As the government presents its 2027 budget outline, political maneuvering ahead of the presidential election complicates deficit reduction while the state prepares to sell a record €340 billion in bonds next year.
51 Articles
51 Articles
The French government bond market has come under unprecedented pressure since the introduction of the euro: the 10-year yield has risen to close to 4.9 percent, and the risk premium paid compared to German bonds has jumped to a level not seen since 2012. Behind the loss of confidence is the deterioration of the budget trajectory, the public debt of around 119-120 percent of GDP, and the fragmented parliamentary situation, which makes it difficul…
France has been hit by rising borrowing costs as the country's debt-to-GDP ratio has reached about 119 percent.
The spread rises to 118 basis points. This time, however, the fault is not of the Boots: it is Paris (together with US bonds) to shake the markets. They keep only the German bunds. The article France and inflation pull down the Btp comes from The Truth.
Budget Fight Looms With Paris Market Looking Frail: Taking Stock
French rates nearly 5% on Thursday, October 1st. If this surge in bond markets comes from the United States, Europe is particularly exposed to it.
European public debt income closed without common direction, falling in the public debt rates of Germany and the United Kingdom, while French interest reached a maximum of 24 years, amidst new high oil prices and persistent uncertainties around the budget and the supply of French securities. Exclusive subject matter for subscribers. To have full access, access the link of the subject and register.
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