This is the highest level since April last year. At the same time, the yield premium that investors demand for ten-year French government bonds compared to German securities climbed to over 100 basis points for the first time since the euro debt crisis in 2012. The Return French 10-year bonds rose more than 14 basis points to an 18-year high of 4.583 percent. This means they are heading for the biggest daily jump since mid-May.
Already last year, France managed a rather inglorious comparison. The costs of repaying debts reached the same level as Italy, which was long considered a major debt maker. But while the Meloni government is pursuing strict austerity measures, France continues to spend money. In August 2025, then Prime Minister François Bayrou announced an austerity package as a “moment of truth” that should be implemented in 2026. Now there is a new prime minister making a new announcement. It remains to be seen how long international investors will have patience.
