France's Borrowing Costs Jump as Budget Crisis Revives Eurozone Sovereign Risk
French 10-year yields rose 10bp to 4.89% with the spread over Germany near a 14-year high, as protests and a record $4 trillion debt pile put European sovereign risk back in focus.
French government borrowing costs climbed sharply this week, with the 10-year benchmark yield up 10 basis points to 4.89% and the spread over German bunds pushing toward a 14-year high. Public debt stands at a record $4 trillion.
The fiscal strain is colliding with street politics: nationwide demonstrations, initially driven by students seeking education funding, have widened into a broader budget crisis. President Emmanuel Macron urged calm ahead of a National Assembly vote on the 2027 budget.
Goldman Sachs warned that European sovereign risk is back in focus, raising concerns about echoes of the eurozone debt crisis. For a continent already absorbing an ECB tightening cycle, a peripheral fiscal shock adds a second, independent source of financial stress.
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