French 10-year bond yields rose to 5.089% on Thursday, their highest since July 2022, after breaking the 5% threshold for the first time since 2002 the day before. The gap between French and German 10-year borrowing costs widened to its highest in almost 15 years, and French yields moved above US Treasuries for the first time since 2013. Investors fear the government will struggle to pass next year's budget amid a parliamentary deadlock that has blocked Emmanuel Macron's plan to raise the pension age from 62 to 64, following protests that led to nearly 2,400 arrests. France's 2025 budget deficit was 5.1% of GDP and its debt 115.6% of GDP, and spreads on Italian and Spanish bonds also widened, while ING expects the ECB to hold rates next week and delay any hike to December.
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EUR/USD
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/21/2026 | 1.12328 |
| Change that session | -0.04% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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