The yield on France’s 10-year OAT bond reached 5% in late morning trading on Wednesday 21 October, its first time at that level since July 2002. The 10-year OAT had closed at 4.93% the previous day, while the CAC 40 fell 1.1%, led by banks. Reuters described the level as a ‘psychological threshold’.
Budget vote postponed
The vote on the 2027 budget revenue, scheduled for Tuesday at the National Assembly, was postponed with no new date. Some 2,828 amendments remain to be examined.
French public debt stands at 3,595 billion euros, and 59.3 billion euros of interest was already planned for 2026. The spread between the French 10-year OAT and the German Bund reached 156 basis points, up from 147 basis points on Monday evening. The German 10-year Bund yield was at 3.40%.
Moody’s review ahead
Moody’s decision on France’s Aa3 rating is due on Friday after market close. France has been on negative outlook for one year. The French 30-year bond yield was at 5.53%.
By our market data, the US 10-year Treasury yield closed at 5.15% on 19 October.
Also Read
Related: 10-year US Treasury yield hits 5.35% for first time since 2002 · French 10-year yield hits 4.93% as CAC 40 falls 1.11%
