France now pays more to borrow for 10 years than the United States, a striking sign of investor worry about its public finances. On Thursday, 22 October 2026, France's 10-year bond yield rose to about 5.06%, above the US 10-year Treasury yield of about 4.95%, for the first time since 2013, according to Reuters.
The numbers
| Measure | Level |
|---|---|
| French 10-year yield | About 5.06–5.09% |
| US 10-year yield | About 4.95% |
| French–German 10-year spread | Widest since November 2011 |
| Italy spread over Germany | 116 basis points (+3.8bp) |
| Spain spread over Germany | 66 basis points (+3.1bp), highest since June 2025 |
Sources: Reuters and The Guardian. A Reuters headline described France's debt risk premium as reaching "euro zone sovereign crisis levels." The 10-year yield had broken above 5% the previous day for the first time since 2002.
Why French yields are rising
- Budget deadlock: the government is struggling to pass next year's budget, and parliamentary deadlock has also stalled plans to raise the retirement age from 62 to 64, according to The Guardian.
- Debt and deficit: France's 2025 deficit was 5.1% of GDP and public debt stands at 115.6% of GDP.
- Unrest: weekend protests in Paris, Bordeaux, Nice and Marseille led to nearly 2,400 detentions, according to the Interior Ministry. See our report on the protest ban and curfews.
The flip was helped by a sharp fall in US yields on the same day, as investors bought Treasuries during a tech-stock sell-off.
Contagion worries
Deutsche Bank's Jim Reid said the French sell-off has begun spreading to other countries, The Guardian reported, with Italian and Spanish spreads also widening. France's CAC 40 stock index fell about 1% on Thursday.
What happens next
- ECB: ING's Carsten Brzeski expects the European Central Bank, which raised rates to 2.5% in September, to hold next week and delay any further hike until December.
- Ratings: Moody's rates France Aa3 with a negative outlook; markets are watching for its next review.
- Budget: any compromise in parliament could ease pressure, while further deadlock could push yields higher.
For earlier coverage, see how the protests rattled French markets.
This article is for information only and is not investment advice.
