French 10-year yield set for biggest quarterly jump since 1987
- 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.
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67 Articles
On the one hand the maxi French debt that travels around 120% of the pil and the maneuver tears and blood presented Thursday by the government of Sébastien Lecornu. On the other hand the oil prices whose race pushed by the war in the Middle East fuel the fears of a persistent inflation and therefore of new increases in the rates from [...] The article High tension on bonds: French rates at the maximum for 24 years and for Italy the spread widens…
The French ten-year bond yield rose to nearly 4.9 percent last quarter. That is the highest level since the introduction of the euro. Concerns are growing rapidly in the financial markets that France is failing to get its finances under control. The differential with the German rate, an indicator of French credit risk, has risen to 152 basis points. That is the highest level for this spread since 2011.
Government bond rates have fallen sharply and yields are rising: France is becoming a major problem in the euro area. However, Britain has to pay even higher interest rates, although it is less indebted. That is why.
French government bond yields have risen to 4.96 percent, reaching the highest level since July 2002. "This shows how much investors are afraid of their money," says portfolio manager Ascan Iredi in conversation with Katja Losch.
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