French Borrowing Costs Hit Highest Level Since 2008 as Budget Crisis Deepens

France's 10-year OAT yield jumped to roughly 4.6–4.7%, its highest since July 2008, while the spread over German Bunds passed 100 basis points for the first time since the 2012 eurozone debt crisis. Investors are demanding a growing risk premium on French debt as the Lecornu government heads into a third consecutive year of budget brinkmanship, with a 2027 draft budget requiring roughly €30 billion in savings threatening to topple the government ahead of the spring presidential election.