Franklin Templeton’s fixed-income investment chief warned that the turmoil could trigger a euro area debt crisis eclipsing the Greek collapse. While US Treasury Secretary Scott Bessent stated he does not expect the instability to spill over broadly, Deutsche Bank CEO Christian Sewing noted that political uncertainty ahead of the May 2027 presidential election is a reason for concern. Finance Minister Roland Lescure remains confident that France will pass its next budget using constitutional levers, even as Barclays strategists report terms where French stocks have become a primary short target for some investors.
Wednesday, October 21, 2026
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French 10 Year Yields Hit 5% for First Time Since 2002 on Fiscal Turmoil
Global Markets14 hours ago
France's borrowing costs surged to their highest level in more than two decades on Tuesday as political turmoil and deficit concerns drove a selloff in government bonds. Yields on 10 year sovereign debt hit 5% for the first time since 2002, while the yield spread against German 10 year bonds widened to 153 basis points. The rout follows a weekend of violent protests over the cost of living and deteriorated public services, causing investors to demand a higher risk premium on French debt as public debt exceeds 115% of GDP.
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