France's 10-year bond yield tops 5% for first time since 2002

France's 10-year bond yield surpassed 5% on Wednesday, a level not seen since 2002, though the government currently pays only about 2% on its existing debt. The yield on the OAT reached 4.97% by 2:45 PM, up from 3.2% in late February. Fitch Ratings noted the gap between market rates and actual borrowing costs nears 300 basis points, with France's average debt maturity at 8 years and 158 days. France's 2027 budget shows interest costs rising from €62.6 billion to €72.9 billion, with Fitch projecting cumulative increases of 0.8% of GDP by 2028. France pays 157 basis points more than Germany, while Italy pays 116, despite higher Italian debt.