German yields near 15-year highs, France's around multi-decade peaks
TLT•Italian and French spreads stay elevated
The yield gap between 10-year Italian government bonds and Bunds <[DE10IT10=RR](reuters://screen/verb=Open/url=cpurl%3A%2F%2Fapps.cp.%2FApps%2Fquotewebapi%3FRIC%3DDE10IT10%3DRR)> was at 77 bps. It was at 63 bps in February before the attack on Iran and hit 103.62 in late March, the widest since June 2025.
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 down one bp at 4.03% after hitting 4.0448% on Friday, their highest level since June 2009. Yields on 30-year government bonds reached 4.847%, a fresh 18-year high.
