France's 10-year borrowing rate tops 5% for first time since 2002

France's ten-year borrowing rate surpassed the symbolic 5% threshold on Wednesday, October 21, reaching 5.005%—a first since 2002. The milestone comes three days after recent violence and amid contentious 2027 budget debates. The rate briefly touched 4.96% on October 1 before retreating. The yield spread over Germany's 3.41% rate hit a record 1.57 points since 2011, with France now borrowing more expensively than Italy and Spain. Bank UBP sees little chance of realistic fiscal consolidation before the May 2027 presidential election. Higher rates increase public debt costs and pressure mortgage and corporate loan rates.