Al Arabiya Net _ The yield on French 10-year bonds rose to record 5.129%, surpassing the US Treasury bond yield for the first time since 2013.
Meanwhile, the US Treasury bond yield declined by approximately 0.06% to settle at 5.086%.
Yields on French government bonds for the 10-year tenure rose to the 5% level yesterday, Wednesday, reaching their highest level in 24 years, in the latest indication of growing investor concern regarding France's ability to restore balance to its fragile public finances.
This increase comes at a time when government bond yields worldwide have experienced a notable rise during the current year, driven by higher energy prices that have prompted central banks to continue tightening monetary policy and raising interest rates.
French bonds are facing mounting pressures as the government, operating under a more fragile political environment, seeks to pass the budget through parliament and reduce the elevated public finance deficit.
Furthermore, uncertainty ahead of the elections scheduled for next year, alongside widespread protests across France, adds further pressure on local markets and drives up borrowing costs.
