France’s borrowing costs have climbed above those of the United States for the first time since 2013, as political uncertainty, public unrest and a worsening budget crisis unsettle investors.
On Thursday, 22 October 2026, the yield on France’s 10-year government bonds rose by nine basis points to 5.089% in early trading, its highest level since July 2022. The yield had crossed the 5% threshold on Wednesday for the first time since 2002.
The gap between French and German 10-year bond yields also widened to its highest level in almost 15 years, reflecting growing investor concerns about France’s financial stability.
The sell-off comes as President Emmanuel Macron’s government struggles to secure parliamentary agreement on next year’s budget. Political divisions have also stalled plans to raise the state pension age from 62 to 64 and introduce measures to reduce public spending.
France recorded a budget deficit equivalent to 5.1% of gross domestic product in 2025, while public debt reached 115.6% of GDP.
Market pressure has spread to other European economies. Italy’s 10-year bond yield spread over German debt widened by 3.8 basis points to 116 basis points, while Spain’s increased by 3.1 basis points to 66 basis points, its highest level since June 2025.
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ING economist Carsten Brzeski said rising yields were reinforcing the European Central Bank’s restrictive monetary policy stance ahead of its interest-rate decision next week.
The ECB is widely expected to hold rates steady, although France’s fiscal outlook could influence future decisions.
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