French 10-year yields surpass 5 percent
The yield on 10-year French government bonds reached 5% for the first time since 2002, with the spread over German bonds widening to approximately 1.57 percentage points. This reflects an increase in France's debt risks and adds pressure on its public finances. France is facing structural challenges, including rising public debt, a budget deficit expected to reach 5.1% of GDP in 2026, and an increase in debt interest payments to 2.6% of GDP. This crisis coincides with the "Yellow Vest" protests against the rising cost of living, which have led to violence and heightened security measures, amid concerns about the impact of these economic pressures on French economic growth and the eurozone as a whole.
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