Symbolic imageBond-market stress deepens as France opens 2027 budget debate
Government bond yields stayed near multi-decade highs as France's National Assembly began examining the 2027 budget on Tuesday. France is increasingly seen as the focal point of the strain.
The French 10-year yield was 4.84% on Monday, 12 October, after nearly touching 5% on Thursday, and remains at its highest level since 2002, Le Monde reports. Handelsblatt notes that Paris pays more than Italy or Greece and says French politics shows no willingness for even small consolidation steps. Bloomberg headlines indicate that Blackstone's Gray and the Fed's Waller see a warning in France's stress.
US Treasuries draw buyers
The US 10-year yield stands at 5.24%, up 1.06 percentage points this year, after a 24-year peak of 5.36% last week, the Financial Times reports. Investors put almost $14bn into Treasury funds since October began, by FT calculations, and BlackRock says it is buying across maturities. A Bloomberg headline quotes Ray Dalio saying the slump has a "long way to go".
Social security funding exposed
Le Monde reports that the Urssaf Caisse nationale, which pays pensions and family benefits, raises 70% of its funds through short-term debt issued in London. Its borrowing averages about 80 days, so it must persuade mostly foreign investors to roll over several times a year.