French 10-year bond yields hit 5%, highest since 2002

By Amanda Cooper

LONDON, ‌Oct 21 (Reuters) - ​France's ​10-year government bond yield hit the 5% mark on Wednesday, a new 24-year ‌high, the latest sign of growing concern ⁠among investors over France's ability to restore its fragile finances.

Government ‌bond yields have risen ‌around the world this year, in light of the surge in energy prices that has ​prompted central banks to respond with interest-rate rises.

Developed market governments are also dealing with ballooning ⁠debt piles, and France has seen its borrowing costs rise more ​than most peers.

France's 10-year bond yield touched 5.002% as of 0914 GMT, and ​was last up about 8 ‌basis points on the day at just below 5%.

Meanwhile, the premium investors demand ⁠to hold French bonds over benchmark 10-year German Bunds was at around 157 bps, nearing levels last ⁠seen in 2011.

The gap between French and German yields reflects ​the extra return investors demand for lending to the former.

French bonds are under pressure because a weakened government ‌is trying to get a budget through parliament and bring down a high ‌deficit.

Uncertainty ahead of a hotly contested election next ⁠year and widespread ‌protests across France ​are also hurting its markets.

(Reporting by Amanda Cooper; Editing by Dhara Ranasinghe and Elisa ‌Martinuzzi)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Explainer-Why is Meta creating a new class of non-voting shares amid its AI growth?
• Brazil consumer prices rise 0.32% in mid-October
• At Cuba's special ed schools, teachers keep classes going despite crisis