French 10-year yield premium over Germany widens to 159bp, highest since 2012; France now borrows at higher rates than Italy

The French-German 10-year bond spread has widened to 159 basis points, its highest since 2012, with France now borrowing more expensively than Italy. The cost of insuring French government debt against default rose to a multiyear high, with 5-year sovereign CDS at 81 basis points, as fiscal concerns intensify. UBS warns France's proposed €43bn in spending cuts still fails to resolve longer-term fiscal challenges.

Detected & updated continuously · Source: Nebula