French bond yields exceed 5% for first time in a year
Yields on 10-year French bonds rose above 5% for the first time in a year, with the spread over German bonds exceeding 170 basis points — a level unseen since the eurozone crisis in the early decade. Investors worry about France's high debt and deficit, weak growth, and political instability. The euro lost nearly 5% against the dollar since the start of the year. Analysts warn of eurozone fragmentation risk, though they see a repeat of the crisis from the 2010s as less likely due to stronger banks and ECB safeguards.
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