Topic

French budget doubts widen spreads

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The French-German bond spread widened Friday as investors doubted Prime Minister Sébastien Lecornu’s 2027 budget would pass or achieve its planned deficit cuts.

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France has taken center stage these days among the G7's three most bond-sensitive economies, with the French-German 10-year spread moving more than 50 bps in the last month.

(The other two economies are Japan and the UK.)

#economy #markets #france #Eurozone #europe #bonds #yields
October 2, 2026 at 5:14 PM

Reposted by Lars P. Feld

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Reposted by John H. Cochrane

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...The premium investors charge to hold those bonds over equivalent German bunds has soared, and is on track for a record weekly widening."
#economy #markets #france #bonds #yields

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October 2, 2026 at 10:11 AM

Reposted by Lars P. Feld

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