The yield on French 10-year government bonds rises above 4.8% amid ongoing fiscal concerns.
智通财经2026/10/07 09:06(1) The yield on French 10-year government bonds has risen above 4.8%, approaching the 20-year high of over 5% reached late last week, as fiscal concerns persist and oil prices return to focus. (2) France's borrowing costs are climbing amid elevated energy prices, rising inflation, and higher interest rate expectations, with its debt particularly impacted by concerns over whether the government can control spending before the 2027 presidential election. (3) The Paris 2027 budget plan proposes spending cuts, aiming to reduce next year's deficit to 5% of GDP, but a lack of credibility and a divided parliament may make this target hard to achieve. (4) Meanwhile, Brent crude is rising, reinforcing market expectations of further rate hikes by major central banks. (5) The market currently expects the European Central Bank to raise rates twice more by March 2027, with swap prices indicating about 75 basis points of tightening by the end of next year.
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