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      French Bond Yields Reach Levels Not Seen Since Eurozone Debt Crisis

      France's 10-year bond yield spread over Germany has widened to 152 basis points, a level not observed since 2011 during the European debt crisis. This increase is attributed to growing fiscal and political concerns within the country, prompting warnings from financial experts.

      Nicolas Forest, Chief Investment Officer at Candriam, stated that French debt is nearing crisis levels, with projections indicating that the fiscal deficit could approach 6% of the country's GDP. The situation has raised alarms among investors, particularly as potential ratings downgrades are anticipated in October.

      The current market dynamics suggest that investors may face challenges, as there is uncertainty regarding the European Central Bank's ability to mitigate the ongoing selloff of French bonds. This development reflects broader concerns about the stability of France's fiscal position in the context of European economic conditions.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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