As concerns about France's fiscal outlook weigh on the market, investors are demanding higher risk premiums for holding French treasury bonds. The much-publicized yield gap between French and German 10-year treasury bonds widened 6 basis points to 159.4 basis points, the widest in 15 years. This spread is seen as an important measure of credit risk in the Eurozone. Since the end of September, this spread has widened dramatically as market concerns about France's debt burden and whether the government can push for the budget to be passed have heated up. Meanwhile, rising energy prices are putting pressure on the bond market. Europe's benchmark natural gas futures rose about 4%, and the price of Brent crude rose above $110 per barrel. The yield on French 10-year treasury bonds rose to 5% for the first time since 2002.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.