French 10-year bond yields rose after an early Tuesday decline, according to Reuters and later Tradeweb figures cited by Dow Jones, while the next debate on a deficit-cutting 2027 budget was scheduled for Oct. 27.
Reuters put the yield at 4.90% early Tuesday, down two basis points. In a later report, Dow Jones cited Tradeweb figures showing a 3.1-basis-point rise to 4.966%. Germany’s 10-year Bund yield stood at 3.428%, down three basis points, in that later snapshot. Both reports gave intraday readings rather than closing levels.
France’s borrowing costs were already under scrutiny. An earlier market snapshot showed French yields rising faster than German yields on Oct. 19. Reuters reported that the gap between the countries’ 10-year yields reached 158.67 basis points in early October, its widest since November 2011.
The government’s draft budget seeks to cut the deficit to 5% of gross domestic product from a projected 5.4% in 2026. It projects public debt at 121.7% of GDP in 2027 and sets out €43 billion in measures across the finance and social security bills.
The government says rising interest payments on debt, along with health and pension costs as the population ages, are putting pressure on public finances. The draft would freeze the civil-service index point in 2027 and sharply limit other pay measures. It also proposes holding social security spending growth to about 2% and a €2.5 billion contribution from local authorities, while limiting growth in their operating spending to inflation.
AP reported curfews in several cities after weekend demonstrations over living costs and school conditions.
The National Assembly’s Oct. 19 record shows that debate on the first part of the finance bill was deferred. Reuters had anticipated a Tuesday vote on the revenue section, but the Assembly’s Oct. 20 agenda listed a social security financing bill instead. Its public schedule lists Oct. 27 for debate on the state budget to resume.
