French bond yields hit 19-year high as investor confidence wanes

French government bond yields hit their highest level since 2002, reaching 5.14 percent overnight, as investor concerns over political instability and budget uncertainty intensified. The premium investors demand for French bonds over German bunds widened to 177.7 basis points, its highest since November 2011 during the eurozone debt crisis. The selloff was driven by uncertainty ahead of France's 2027 presidential election, difficulties passing a budget, and violent protests last weekend. France's debt-to-GDP ratio stands at 119 percent, with debt servicing forecast to reach €124 billion by 2030. Analysts warn yields could rise to 5.5 percent if Paris fails to deliver credible budget cuts, while investors increasingly seek safe havens like US Treasuries and German bunds.