{
  "id": 8274258,
  "title": "French bond spread at highest since 2012 as default insurance spikes",
  "url": "https://urgent.news/2026/09/18/french-bond-spread-at-highest-since-2012-as-default-insurance-spikes",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T15:53:10.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/us-stocks/news/global-markets-french-bond-spread-at-highest-since-2012-as-default-insurance-spikes/articleshow/134338977.cms"
  },
  "original_language": "en",
  "account": "Investor concerns over France's strained finances ahead of next year's elections pushed the risk premium on French government bonds to the highest level since the euro zone debt crisis, while the cost of insuring the country's debt also spiked significantly. The spread on French 10-year government bonds over Germany's rose as high as 104 basis points, surpassing a full percentage point for the first time since 2012 due to investors demanding higher compensation for the risk of holding French debt. Yields on French 10-year bonds rose to 4.456%, outpacing any other developed economy in a selloff driven by higher energy prices that have rattled global government debt markets recently. France's vulnerability in this bond selloff is compounded by the country's challenging budget and struggles to improve its fiscal position before the presidential election next year, which could make the task even more difficult. Prime Minister Sebastien Lecornu announced a €54 billion savings drive in its 2027 budget to curb the fiscal deficit, but France is expected to miss this year's deficit target due to slower-than-expected economic growth. French 5-year credit default swaps hit 41.5 basis points, the highest level since the U.S. President Donald Trump's tariffs in April 2021 caused market turmoil. French bank stocks, including BNP Paribas and Credit Agricole, also faced declines as French blue-chip CAC index dropped 1.5%, underperforming other regional indices.",
  "summary": "Amid rising investor concerns surrounding France's fiscal health leading up to next year's elections, risk premiums on French government bonds have surged to levels not seen since the euro zone debt crisis. The country grapples with a tough budget situation, prompting plans for a substantial savings initiative aimed at mitigating the increasing budget deficit, which has impacted French banking…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}