The premium investors demand on the French 10-year versus lower-risk German Bunds climbed to 120 bps, the highest since 2012, as market participants brace for possible political turmoil next year. Analysts had warned the spread could reach this level

2026-09-30

The premium investors demand on the French 10-year versus lower-risk German Bunds climbed to 120 bps, the highest since 2012, as market participants brace for possible political turmoil next year. Analysts had warned the spread could reach this level if fiscal and political uncertainty worsened. During a recent global bond sell-off, political and fiscal volatility has left French debt lagging: the France-Germany 10-year spread has nearly doubled in the past four months and France’s long-term borrowing costs are at their highest since 2002.