French bond yields hit highest level since 2002

French bond yields have risen to their highest level since 2002, with ten-year government bonds now yielding more than their US counterparts for the first time since June 2013. The yield climbed above 5.1 percent on Thursday, surpassing levels seen during the euro crisis. The risk premium on French bonds over German bonds has more than doubled within three months to over 170 basis points, while the premium over Italian bonds has also widened to nearly 50 basis points. Analysts cite ongoing protests, political fragmentation, and budget pressures as key factors driving market concerns. Moody's may downgrade France's credit rating on Friday evening. The minority government faces uncertainty over implementing planned savings of 54 billion euros, while Scope estimates permanent measures of at least 100 to 120 billion euros are needed to stabilize the debt ratio.