The rout wiped more than 2 billion euros from the market value of French airport and highway operators in one session after the government suggested higher infrastructure taxes. The CAC 40 index has fallen 10% from its peak, and the euro dropped 4% since August to 1.119 per US dollar, its lowest level since May 2025. A senior Eurozone official stated there is no sign of contagion and France remains fundamentally solid, though the official warned that some political forces must stop playing games with the economy.
Tuesday, October 20, 2026
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French Bond Spreads Hit Widest Level Since 2012 as Banks Sink
Global Markets13 days ago
Shares of Societe Generale and Deutsche Bank dropped more than 5% on Oct. 7 as investors expanded a selloff in French sovereign debt into equity, credit, and currency markets. The spread between French and German 10 year bonds widened to 140 basis points, the largest premium since the 2012 euro area debt crisis, while the French 10 year yield rose to 4.91%. Market stress intensified as the annual cost to insure 10 million euros of Societe Generale debt against default climbed to 103,000 euros, which is about 16,500 euros more than comparable coverage for Deutsche Bank.
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