France's government bond yields hit highest since 2002 ahead of budget
TLT•French 10-year government bond yields rose as high as 4.96%, their highest since July 2002, ahead of the government's 2027 budget. The spread over German yields reached 131.91, its highest since May 2012.
1. Yields reach 24-year high
French 10-year government bond yields rose to as high as 4.96% on Thursday, their highest level since July 2002 and close to 5%, as the government prepared to unveil its 2027 budget.
2. Debt and political risks
French bonds have faced selling pressure in recent weeks amid concern about rising policy rates, high debt and political risk ahead of the 2027 presidential election. The gap between French and German government bond yields reached 131.91, its highest since May 2012. France's public debt management office said on Tuesday that the government would sell a record amount of bonds to investors next year.
