France’s 10-year sovereign borrowing benchmark moved past 5% on Wednesday, a level unseen since 2002, putting new borrowing costs in focus before eurozone data and a Moody’s review Friday.
Reuters reported that the yield reached the 5% mark. FactSet data cited by Axios showed a 5.01% reading at 11:35 a.m. ET (15:35 UTC). Le Monde reported that France also borrowed briefly at rates above 5% to finance its debt. That points to higher costs on new borrowing, though it does not set the rate on government debt already outstanding.
FXStreet later put EUR/USD just below 1.1250. Earlier Wednesday, Reuters market analyst Jeremy Boulton reported an EBS range of 1.1214 to 1.1234. The readings cover different times and do not establish a closing rate.
Friday, Oct. 23, brings both the eurozone flash Purchasing Managers’ Index (PMI) and Moody’s expected review of France’s Aa3 rating. Agence France Trésor’s rating calendar lists a negative outlook and April 10 as the date of the last decision. S&P Global’s calendar schedules the PMI release for 4 a.m. ET (08:00 UTC), earlier that day than any rating announcement.
European Securities and Markets Authority (ESMA) guidance says sovereign rating actions should be published Friday after the last regulated market in the European Union closes. A scheduled review date does not require Moody’s to issue an action.
S&P Global’s September survey recorded a eurozone composite PMI reading of 53.1, compared with 52.0 in August. The data marked three consecutive months of expansion and the strongest reading in nearly three and a half years, the firm reported.
Reuters reported that Moody’s had described France’s ability to pass its 2027 budget as highly uncertain amid political fragmentation. The National Assembly schedule sets Oct. 27 for the start of examination of the budget’s second part.
