French Yields Overtake Italy’s for First Time Since 1998 Amid Political Turmoil
France’s 10-year bond yields rose above Italy’s for the first time since 1998 on Tuesday, as President Emmanuel Macron grapples with a deepening political crisis.
French 10-year yields climbed seven basis points to 3.489% in morning trade, briefly exceeding Italy’s 3.486% before easing back to 3.475% in the afternoon. The rise reflects investor unease over political instability in Paris, where planned protests and questions about fiscal stability have unnerved markets.
The move follows the dramatic ousting of François Bayrou as prime minister after losing a confidence vote in parliament on Monday. Bayrou’s departure, just nine months into the role, leaves Macron searching for his fifth prime minister in just over two years amid mounting pressure to resign.
Although yields remain below last week’s peak of 3.59%, they are still well above the 2.9% level seen a year ago, underlining the growing strain on French finances. Investors are now watching closely to see how Macron responds as the political deadlock threatens to further unsettle markets.
