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2025-09-15 15:30:38
[French 10-Year Government Bond Yield Breaks 3.5%, Hitting a New High Since the Beginning of the Month] ⑴ Fitch downgraded France's sovereign credit rating from AA- to A+, its lowest level ever. The 10-year government bond yield further rose above 3.5%, its highest level since early September. The agency cited political instability and rising debt as heightened fiscal concerns, coming at a time when President Macron has appointed his fifth prime minister in two years. ⑵ Former Prime Minister Bayrou resigned last week, failing to secure support for his tax increases and spending cuts; his plan to cancel two public holidays to save money was quickly abandoned by his successor. New Prime Minister Le Cornu must submit a draft 2026 budget to Parliament by October 7, with an extension available until October 13. France's fiscal deficit is projected to reach 5.4%, the highest in the eurozone.
