French Bonds

French Bonds: Are They on the Decline?

Investors are increasingly betting on a decline in French government bond prices.

This comes as concerns mount over a political battle surrounding the 2027 budget and with next year’s presidential election approaching.

Futures trading indicates an increase in short positions on French debt.

Meanwhile, the number of open contracts on 10-year bonds rose to its highest level since early June.

This pressure was immediately reflected in yields; the yield on 30-year French bonds reached 4.75%, the highest since 2008.

The yield spread between 10-year French and German bonds also widened to 84 basis points.

This is the widest since October, reflecting investors’ demand for a higher premium to hold French debt.

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