French Budget Rejections Fuel Debt Crisis Fears As Yield Spread Over Germany Hits 15-Year High

French Budget Rejections Fuel Debt Crisis Fears As Yield Spread Over Germany Hits 15-Year High French government bonds sold off earlier today, pushing 10-year yields above 5% as budget concerns and social unrest sent the country's borrowing premium over Germany to its highest since 2011. The French 10-year yield climbed to 5.11%, its highest since 2002, while the spread over equivalent German debt widened to 174 basis points, according to Bloomberg data. Separately, across the Atlantic, the 10-year US Treasury yield declined to 5.07% as EU equities weakened and US stock futures fell on concerns about an AI bubble.  UBS macro strategist Simon Penn wrote in a note to clients that the surge in French yields and the...

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