France-Germany Government Bond Yield Spread Hits 12-Year High

Forex - The risk premium demanded by investors to hold French government bonds has risen to its highest level since 2012, as concerns over the inability of the government and opposition to reach an agreement weigh on the budget. Benchmark German government bond yields fell alongside U.S. Treasury yields. The gap between 10-year bond yields of France and Germany reached a peak of 90 basis points, the highest in over 12 years, before falling to around 88 basis points. France's 10-year bond yield recently increased by 2 basis points to 3.043%, while Germany's yield decreased by approximately 3 basis points to 2.165%.