French 10-Year Yield Nears 24-Year High at 4.96% as New Protests Widen Spread
Updated
Updated · Reuters · Oct 20
French 10-Year Yield Nears 24-Year High at 4.96% as New Protests Widen Spread
3 articles · Updated · Reuters · Oct 20
Summary
France’s 10-year OAT yield rose 3 basis points to 4.96% on Tuesday, pushing back toward the 4.9937% peak hit earlier this month, after Monday’s sharp selloff.
Saturday protest plans added to investor caution after weekend riots, reinforcing fears that any government will struggle to deliver deficit-cutting reforms and budget savings.
The OAT-Bund spread widened 5.5 basis points to 152.50, while Italy’s spread also rose, showing broader pressure on higher-risk euro zone sovereign debt.
Germany’s 10-year Bund yield fell 2 basis points to 3.43% on safe-haven demand, though persistent energy costs and firmer oil prices kept expectations for further ECB rate hikes largely intact.
French budget votes and a political backdrop favoring Marine Le Pen and other non-centrist candidates are adding to concern over France’s fiscal path.