# France’s 10-Year Bond Yield Tops 5% as Moody’s Keeps Aa3 Rating By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/39983 Published: 2026-10-24T12:56:22.000Z Updated: 2026-10-24T12:56:22.000Z Section: Investing > The yield crossed that threshold for the first time since 2002, and the spread over German bonds reached a 15-year high. France’s deficit is about 5.5% of GDP, above the EU’s 3% limit. France’s 10-year bond yield topped 5% for the first time since 2002 this week, while Moody’s kept its Aa3 rating and negative outlook as the country’s deficit remained above the European Union’s limit. The spread between French and German government bond yields also reached its highest level in 15 years. France’s budget deficit is about 5.5% of gross domestic product, compared with the EU’s 3% limit for member states. More than $1 trillion in French debt is due to mature by 2030. Moody’s kept the [Aa3 rating and negative outlook]() on Friday, Oct. 23. The agency classifies Aa3 as high grade. Moody’s tied the negative outlook to the risk that political fragmentation could continue to impair France’s legislative institutions. It said the outlook could return to stable if those institutions narrow the deficit. Moody’s also warned that political instability and social tensions risk making it harder for the government to address the deficit, rising debt and sustained higher bond yields. The agency said those pressures could weaken France’s credit measures faster than it expects. More than 500,000 people marched last weekend amid anger over public services and living costs. The French finance ministry projected last month that the country’s debt-to-GDP ratio would reach 121.7% in 2027. Fitch and S&P Global cut their ratings on France in 2025. French Finance Minister Roland Lescure has called for the government to adopt its 2027 budget by year-end and reduce the deficit to 5%. ## Links in this article - [Aa3 rating and negative outlook](https://www.tokenpost.com/news/regulation/39584)