EU's Dombrovskis: France needs sound 2027 budget to calm bond markets
TLT•Valdis Dombrovskis said France needs a fiscally prudent 2027 budget to reassure bond markets. The French 10-year bond yield has risen nearly 80 basis points since early September and reached its highest level since July 2002, just below 5%.
1. Budget needed to reassure markets
European Economic Commissioner Valdis Dombrovskis said France needs to adopt a fiscally prudent 2027 budget to calm bond markets. He said a sound budget would help provide predictability and credibility, and that he was in contact with French Finance Minister Lescure.
2. French yields climb
France’s 10-year bond yield has jumped nearly 80 basis points since the start of September, reaching its highest level since July 2002, just short of 5%. The increase is driving up borrowing costs as the country faces concerns over its large budget deficit and the looming 2027 presidential election.
