French long-term bond yield reaches 5%, highest in about 24 years, amid budget worries
In short
The French long-term government bond yield rose to 5% at one point on the 21st in the European market, the first 5% level since 2002, Nikkei reported. Japanese outlets linked the move to concern over French public finances, a difficult budget and unrest.
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The French long-term interest rate rose to 5% at one point in the European bond market on the 21st, with bond prices falling, Nikkei reported from London. It said a 5% level had not been seen since 2002, about 24 years. NHK likewise reported that the 10-year government bond yield briefly reached 5%, citing concern about worsening French public finances. [ 2 , 3 ]
Nikkei said a rebound in oil prices pushed up government bond yields across Europe. In France, it said, worry over difficulty with fiscal consolidation and over prolonged protests added to the selling of government bonds. [ 2 ]
Nishi-Nippon Shimbun's headlines attribute the move to riots and distrust of fiscal management, and say the yield briefly went above 5%, which differs slightly from the 5% reported by Nikkei and NHK. A Nikkei roundup headline for European bonds on the 21st said the gap with German yields also widened. The available texts give no further figures or detail. [ 1 , 4 , 5 ]
Why it matters
The documents describe selling of French government bonds driven by doubts about fiscal management. Nikkei also points to a rebound in oil prices lifting European yields generally.
Key facts
- The French long-term interest rate rose to 5% at one point in the European bond market on the 21st. [ 2 , 3 ]
- Nikkei said bond prices fell as the yield rose. [ 2 ]
- A 5% level was last seen in 2002, about 24 years ago. [ 2 , 3 ]
- NHK said the 10-year government bond yield briefly reached 5% on concern about worsening French public finances. [ 3 ]
- Nikkei said a rebound in oil prices pushed up European government bond yields, while difficulty with fiscal consolidation and prolonged protests added to selling of French bonds. [ 2 ]
- Nikkei's headline for its market roundup said the gap between French and German yields also widened. [ 4 ]
- Nishi-Nippon Shimbun headlines tie the move to riots and distrust of fiscal management. [ 1 , 5 ]
Confirmed by several sources
Still unclear
- Whether the yield stood exactly at 5% or went above it. Nikkei and NHK say it reached 5%, while Nishi-Nippon Shimbun's headlines say it briefly exceeded 5%.
- How far riots, as opposed to budget difficulty and oil prices, drove the sell-off. Nishi-Nippon Shimbun headlines name riots; Nikkei's text cites oil prices, fiscal consolidation difficulty and prolonged protests; the available texts give no detail on the riots.
- The size of the gap between French and German yields. Only a headline mentions that it widened; no figures are given.
What local media are saying
Timeline, local time
- Nishi-Nippon Shimbun published a headline on French long-term rates above 5% and distrust of fiscal management after riots (21 October). [ 1 ]
- Nikkei reported the yield rose to 5% at one point in European trading, the first 5% level since 2002. [ 2 ]
- NHK reported the 10-year yield briefly reached 5% (22 October). [ 3 ]
- Nikkei published its roundup of European government bonds for the 21st (22 October). [ 4 ]
- Nishi-Nippon Shimbun published a headline saying the yield briefly exceeded 5% (22 October). [ 5 ]