France-Germany 10-Year Yield Spread Reaches 15-Year High at 160.9 Basis Points

France’s 10-year government bond yield reached 5.0601% on Oct. 22, its highest since July 2002, while the gap over Germany’s comparable yield widened to a 15-year high of 160.9 basis points. France’s yield added six basis points. The spread compares the two countries’ 10-year borrowing rates; 160.9 basis points equals 1.609 percentage points. On Oct. 19, the premium was about 146 basis points, with France’s 10-year yield near 4.9% and Germany’s at 3.45%. That earlier move marked a two-week high in the French bond premium over Germany . Fiscal pressure and continuing protests have weighed on confidence in French markets.

Source: TokenPost