French 10-Year Bond Yields Hit 5%, Highest Since 2002
Investors are demanding a higher premium as lawmakers struggle to approve a 2027 budget and Moody's prepares a rating decision, analysts said.
- On Wednesday, France's benchmark 10-year government bond yield briefly crossed the 5% threshold for the first time since 2002, marking a new 24-year high amid multiple crises.
- The French Government is struggling to pass a federal budget through a divided parliament as market pressure for fiscal consolidation mounts in response to swelling national debt and wide deficits.
- France's 10-year OAT reached 5.002% before settling at 4.9794%, while investors demanded a premium of around 157 basis points to hold French bonds over benchmark 10-year German Bunds.
- Widespread protests against the "high cost of living" erupted across France, with violent clashes occurring in Marseille on Oct 17, 2026, reflecting public dissatisfaction over economic pressures.
- Developed market governments face mounting pressure from rising global bond yields driven by energy price surges, while uncertainty ahead of next year's hotly contested French election compounds market concerns.
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76 Articles
Around 10:00 in Lisbon, France's interest at ten years rose to 5.08%, but hour and a half later fell to 4.992%, after having finished at 4.929% on Tuesday.
France's 10-year-old state bonds rose by more than 5% on Wednesday for the first time since 2002, indicating growing investor doubts about the country's ability to improve public finances, written The Wall Street Journal.
Concern about the unstable public finances and riots in France is growing, with French government bond yields as high as they were 24 years ago.
10-year bonds, reference category, exceed the 5% barrier
(London=Yonhap News) Correspondent Kim Ji-yeon = As anxiety over France's public finances grows, the yield on 10-year French government bonds has surpassed 5% for the first time since 2002...
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