Symbolic imageBundesbank official warns of rising euro-zone debt risks as French yields stay high
A Bundesbank official says euro-zone debt-crisis risks have risen sharply, Bloomberg reports. France is the focus as global bond yields stay high.
French 10-year yields stood at 4.83% on Friday, 9 October, according to former IMF official Desmond Lachman in Le Monde. The Guardian reports they had hit their highest level since July 2002, just short of 5%, the week before. The Wall Street Journal reports that global yields turned lower on Friday after weeks of selling. Guardian and Le Monde commentary describe France as the biggest worry among indebted Western economies.
Corporate bonds below state yields
Handelsblatt reports, citing Bloomberg data, that French corporate bonds worth 215 billion euros now yield less than French government bonds, 18 times more than at the start of the year. Bank of America banker Denis Ertungealp calls the inversion one of the biggest topics at present.
Weak public finances
The Guardian puts French debt at 115.6% of GDP in 2025 and the deficit at 5.1%. In a survey by the employer federation Medef, 82% of firms were pessimistic about the next government's economic policy.
Who backstops France?
Economist Anton Brender argues in Le Monde that Donald Trump's policies push rates up worldwide, and that euro-zone states and the ECB should close ranks. Lachman warns France against relying on the ECB's safety net, and the Guardian notes ECB rules tie bailouts to strict conditions.