French borrowing costs top US as budget turmoil deepens
Briefing by News4U · First published
France’s 10-year bond yield rose to 5.089%, surpassing US Treasuries for the first time since 2013 amid protests and stalled budget talks.
French 10-year yields climbed nine basis points to 5.089% on Thursday, lifting the spread over German bonds to a 15-year high and pushing French borrowing costs above US Treasuries for the first time since 2013, as investors reacted to the government’s struggle to pass next year’s budget. [1] [2] [3]
The volatility follows violent weekend protests that led to nearly 2,400 arrests and renewed pressure on France’s 5.1% deficit and 115.6% debt-to-GDP ratio. [1]
Sources
- French borrowing costs overtake US amid budget turmoil
The Guardian · · Full text
- French Bond Stress Deepens as Spreads Widen to 15-Year High
Bloomberg · · Summary only
- France’s Debt Crisis Deepens as Foreign Investors Look for the Exit
WSJ Markets · · Summary only