The 10-year OAT-Bund spread stood at 159.9 basis points on 2 November, according to the record, while the vote on the 2027 budget revenues scheduled for 3 November was postponed for a second time. The spread had been 102 basis points on 22 September. It peaked at 174.6 basis points on 22 October, when the OAT 10-year yield closed at 5.13 percent.
Union coalitions and high-school students mobilised ahead of a planned nationwide protest on 5 November against the cost of living. The vote on revenues was delayed after 20 October, and the Assembly must vote by midnight on 17 November.
Borrowing costs in the draft budget
The draft 2027 finance bill puts the state’s interest charge at 91.2 billion euros, up from 79.2 billion euros in 2026. The Agence France Trésor plans to borrow 310 billion euros in medium and long-term debt this year.
Each additional 100 basis points on the 2026 issuance would add about 3 billion euros a year in interest, the record estimates. Public debt stands at 3,615 billion euros, or 119.2 percent of GDP.
Households and markets
The average 20-year mortgage rate rose to 3.76 percent in November from 3.66 percent in October, according to Pretto. French inflation was 3.4 percent in October, year on year, with energy inflation at 24.1 percent.
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Governor of the Banque de France Emmanuel Moulin said the situation is serious. Bitcoin traded near 76,800 dollars on 3 November around 6am Paris time, according to CoinGecko, after falling 7.67 percent over October.
Related: French OAT-Bund spread widens to 137.4 basis points · French riots threaten growth as France-Germany spread widens
