French-German bond spread posts sharpest retreat since 2020

The spread between French and German 10-year yields narrowed by ~14bp to 1.53 points, after hitting 1.78 points intraday last week, the highest since 2011. The French yield fell below 5% to 4.90%, signaling a partial easing of fiscal risk premium. The move suggests market sentiment toward French debt is stabilizing, but the spread remains elevated, indicating persistent concerns over political and fiscal stability.

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