German Bund yield hits 15-year peak, France's at highest since 2009
TLT•German and French yields at their highest in years
Germany's 10-year Bund yield DE10YT=RR was up 1.5 basis points to 3.2158%, its highest since May 2011. The country's two-year bond yields DE2YT=RR, which are more sensitive to interest rate expectations, were roughly unchanged at 2.79%.
French bonds remain under pressure as investors fear France's fiscal trajectory is unlikely to improve ahead of a presidential election scheduled for spring 2027. Some analysts argued that, in a low-volatility environment, investors' search for yield could help limit any widening in the spread between French government bonds and safe-haven German Bunds.
France's 10-year government bond yields FR10YT=RR were up 1 bp at 4.0535%, the highest level since June 2009. Yields on 30-year government bonds FR30YT=RR reached 4.8193%, the highest since September 2008, up 1.5 bps on the day.
The yield gap between 10-year OATs and Bunds DE10FR10=RR was at 83 bps, not far from its highest level since October 2025.
