French Government Bond Yields Ease as Eurozone and U.S. Peers Stabilize

French government bond yields eased Tuesday as eurozone bonds and U.S. Treasurys stabilized, following recent sharp rises, though France's risk premium over German Bunds remains near its widest since the 2012 sovereign debt crisis. The 10-year French OAT yield fell 1.6 basis points to 4.919%, while the German Bund yield dropped 2.3 basis points to 3.435%. The OAT-Bund spread closed at 144 basis points, down from Monday's 147, with strategists noting no clear anchor level for French risk as sentiment drives markets. France's National Assembly is set to vote on the 2027 budget's revenue section amid social unrest and high debt at 119% of GDP. BlackRock says the situation differs from 2011-2012 due to stronger banks and ECB tools, though it remains neutral on eurozone bonds.