French Bond Yields Rise Amid Fiscal and Political Uncertainty

French government bond yields continued to climb on Thursday as concerns about a possible debt crisis and political disputes over next year’s budget weighed on the country’s financial outlook.

Prime Minister Sébastien Lecornu outlined plans to reduce government spending by €54 billion. Finance Minister Roland Lescure warned that the proposed spending cuts would be put into effect if lawmakers do not approve the budget. At the same time, widespread protests over rising living costs have placed additional pressure on France’s economy and political leadership.

The yield on France’s 10-year government bonds increased by 11.91 basis points to 5.1129%, moving above the US 10-year Treasury yield for the first time since 2013. The 30-year bond yield gained 6.65 basis points to reach 5.5721%, while the 2-year yield climbed 15.56 basis points to 3.8655%.