France-Germany 10-Year Yield Spread Reaches 15-Year High at 160.9 Basis Points

France’s 10-year government bond yield reached 5.0601% on Oct. 22, its highest since July 2002, while the gap over Germany’s comparable yield widened to a 15-year high of 160.9 basis points.

France’s yield added six basis points. The spread compares the two countries’ 10-year borrowing rates; 160.9 basis points equals 1.609 percentage points.

On Oct. 19, the premium was about 146 basis points, with France’s 10-year yield near 4.9% and Germany’s at 3.45%. That earlier move marked a two-week high in the French bond premium over Germany.

Fiscal pressure and continuing protests have weighed on confidence in French markets. Yield spreads for other euro area government bonds relative to German debt also widened.