France's government bond yields hit highest since 2002 ahead of budget

By Reuters News
One hundred Mark notes and fifty Euros note are seen in this photo illustration taken in Berlin on December 30, 2011. REUTERS/Pawel Kopczynski

Oct 1 (Reuters) - French 10-year government bond yields jumped to their highest level since 2002 on Thursday, as the government prepared to unveil the country's 2027 budget later in the session.

French bonds have come under selling pressure in recent weeks on concern about rising policy rates, high debt and growing political risk as a 2027 presidential election looms.

France’s 10-year government bond yields rose to as high as 4.96%, the highest level since July 2002, and within striking distance of 5%.

The gap between French and German government bond yields – a market gauge of the risk premium investors demand to hold French debt - was at 131.91 its highest level since May 2012.

The French government will sell a record amount of bonds to investors next year, the public debt management office said on Tuesday.

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