The yield on the French 10-year bond, known as obligation assimilables du Trésor or Oat, rose by nine basis points to 5.089% in early trading on Thursday, marking its highest level since July 2022. France’s 10-year borrowing costs rose above the equivalent for US Treasury bonds on Thursday for the first time since 2013.
France’s budget deficit reached 5.1% of gross domestic product in 2025, while its debt pile stood at 115.6% of GDP. The country also grapples with higher inflation triggered by the war in Iran, placing acute pressure on many governments with big debt piles.
French borrowing costs continued to climb on Thursday as investors fretted that the government is struggling to pass a budget after public protests gripped the country. Public buildings were attacked, and thousands of shops and businesses were looted during the unrest.
The volatility on financial markets comes as the French government struggles to pass a federal budget for next year, while the country recovers from widespread protests that turned violent last weekend.
French borrowing costs continued to rise on Thursday, as investors fret that France’s government is struggling to pass a federal budget after public protests gripped the country.
France’s budget deficit was 5.1% of gross domestic product in 2025, while its debt pile stood at 115.6% of GDP.
A parliamentary gridlock has blocked plans by the president, Emmanuel Macron, to increase the state pension age from 62 to 64 and a series of measures designed to rein in state spending.
The move lifted France’s 10-year borrowing costs over the equivalent for US Treasury bonds for the first time since 2013.