French bond yields lead gains in the eurozone, pressured by budget negotiations and electoral uncertainties
智通财经2026/10/07 07:37(1) In early European trading, French government bond yields rose, outpacing similar eurozone bonds. (2) French government bonds remain in focus as the government sticks to its plan to cap the deficit at 5% of GDP during budget negotiations. (3) In a report, ING rate strategists Michiel Tukker and Benjamin Schroder noted that far-right leader Marine Le Pen’s fiscal plans may temporarily support French bonds, but lack of credibility and future election uncertainty still point to risks of wider spreads. (4) Eurozone government bond yields also followed U.S. Treasury yields higher as the market awaits the release of the latest Federal Reserve meeting minutes. (5) The yield on the German 10-year government bond rose by 2.2 basis points to around 3.5%, while the French 10-year government bond yield climbed 5.4 basis points to roughly 4.8%.
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