The political feud coincides with a surge in borrowing costs, as the spread between 10 year French and German government bonds hit about 140 bps, the widest since the 2012 eurozone crisis. Deutsche Bank reported that the 32 bps widening in this spread last week was the largest since 1990. Investors are weighing a budget deficit above 5% of GDP and debt approaching 120% of GDP, while some link the volatility to rate hikes sparked by a war in Iran.
Tuesday, October 20, 2026
Story
French Bank Head Slams Trump Style Threats in Widest Bond Rout Since 2012
Global Markets14 days ago
The governor of France's central bank has pushed back against accusations of treason and threats of legal prosecution from far-left presidential contender Jean-Luc Mélenchon. Emmanuel Moulin denounced the rhetoric as "Trump-style" after Mélenchon vowed to pursue legal action by 2027, claiming the bank chief collaborated with international speculators to punish the state. The clash followed a warning from Moulin that the country risks being "strangled by interest rates" if it does not aggressively clean up its public finances.
Looking for more context or analysis?
Tilt chat provides reliable, tailored insights, alerts, and automations.