French 10-year yield set for biggest quarterly jump since 1987
TLT•France’s 10-year bond yield rose 119 basis points in the third quarter, its biggest quarterly jump since 1987, and gained 66.5 basis points in September. The government plans to sell a record €340 billion of bonds next year.
1. French yields rise
France’s 10-year yield was last at 4.84%, after reaching 4.8485%, its highest level in 18 years. It rose 66.5 basis points in September, the biggest monthly increase since late 2022, and 119 basis points since the start of July.
2. Borrowing costs and inflation
The government said it would sell a record €340 billion of bonds next year. Interest expenditure is now expected to be €5 billion higher in 2026 and €7 billion higher in 2027 than forecasts made a year earlier. France’s harmonised inflation rate rose to 3.4% in September from 2.6% in August; Italy’s rose to 4.1% from 3.2%.
