French Bond Selloff Deepens; Spread Over Germany Hits Euro Debt-Crisis Levels

Selling pressure on French government bonds has intensified, causing the yield gap between French and German sovereign debt to widen to levels last seen during Europe's debt crisis in the 2010s. The spread between 10-year French and German government bond yields reached as much as 152 basis points in intraday trading on October 2, 2026, the widest gap since 2011. This is driven by concerns over France's fiscal and political instability, despite a recently unveiled 2027 budget plan with spending cuts.