German Bund Yield Hits 15-Year Peak While French Bonds Fall
· Business · Economic Times, Financial Times, Bloomberg
Euro zone long-dated government bond yields climbed to multi-year highs as persistent inflation fears and potential defense spending pressures weighed on debt markets. Germany's 10-year Bund yield rose one basis point to 3.21%, reaching its highest level since May 2011. Meanwhile, France's 10-year government bond yields increased 1.5 basis points to 4.05%, marking the highest rate since June 2009 amid fiscal trajectory concerns ahead of the spring 2027 presidential election. Yields on French 30-year government bonds also reached 4.8617%, the highest since September 2008. Money markets priced in a European Central Bank deposit rate of 2.76% by March 2027.
Why it matters
Rising European bond yields increase borrowing costs for governments and corporate borrowers across the Euro zone, pressuring fiscal budgets and broader market valuations.
Read the original report — Economic Times
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