European Bond Yields Reach Multi-Year Peaks as US High Yield Spreads Expand

European sovereign bond yields, including France's 10-year OAT, surged to multi-year highs on October 23, 2026, with the French yield briefly hitting 5.14%. The spread between German and Italian 10-year yields also widened significantly to 124 basis points, marking its highest close since early 2025. Simultaneously, US high yield bond spreads increased by 11 basis points against US treasuries, reaching their highest point since April 2025, indicating growing investor caution in credit markets.