France’s 10-year bond yield rises above 5%

France’s 10-year government bond yield rose above 5% during trading on Wednesday, October 21, its first time above that level since 2002, as investors demanded higher returns to hold the country’s debt. The yield is a market measure, not a government borrowing rate applied immediately to all outstanding debt, but a sustained rise can increase financing costs as obligations are refinanced. The French-German 10-year yield spread also widened to about 157 basis points, or nearly 160 basis points. The spread measures the additional return investors seek on French debt compared with German bonds, a benchmark for euro-area credit risk. The reported level was among the widest since the eurozone debt crisis. The move came amid rising global bond yields and concerns about France’s public finances and political uncertainty. One account said global market pressures had weighed on French bonds earlier, while the recent widening of the French-German spread pointed to growing France-specific risk concerns. The sources do not establish how much each factor contributed to Wednesday’s move. French lawmakers are debating a proposed 2027 budget that includes €43 billion in spending cuts. Prime...