French 10-year bond yield rose 6bps to 5.0601%, its highest since July 2002. The
spread over the German bund widened to 160.9bps, the largest since November 2011
during the euro-area debt crisis. Sovereign spreads across the eurozone versus
the German bund also widened. Investors cited concerns over France’s strained
public finances, ongoing street protests, political uncertainty ahead of next
year’s election, and Paris’s difficulty in passing the budget as weighing on
market sentiment.
