French government bonds remain under pressure, with the spread between French and German 10-year bond yields widening to nearly 175 basis points. France's large fiscal deficit, political instability, recent unrest, and uncertainty surrounding the passage of the 2027 budget are all weighing on the bond market. The government also plans to issue €340 billion in medium- and long-term debt in 2027. The next key event to watch is Moody's assessment of France's sovereign rating after the close of European markets today.
