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French borrowing costs rise as debt and political risks mount
French government borrowing costs have surged as debt and political risks build, prompting analysts to examine whether the stress could spread across the euro zone. France is awaiting a Moody's rating decision, with a downgrade widely expected, France 24 reported.
Why it matters
Higher French bond yields raise the cost of servicing public debt in the euro zone's second-largest economy.
Background
France has run large budget deficits and faced repeated government instability since Macron dissolved parliament in 2024. Credit agencies have been reviewing its rating.
The story so far
- French bonds, stocks and euro fall as unrest compounds debt fears
- French bond yield hits 5% and Carrefour shares fall on unrest
- French 10-year bond yield reaches new 24-year high
- French borrowing costs rise as debt and political risks mount
- French borrowing costs hit 24-year high after unrest
Sources
- CNBC ↗Oct 23, 7:12 AM ET
- France 24 ↗Oct 23, 9:10 AM ET
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