French bond yields overtake US Treasuries

According to market data reported by The Guardian at 08:36 UTC, French yields increased approximately 10 basis points, while the US 10-year Treasury yield declined 4 basis points to 5.07%. The selloff pushed French borrowing costs to their highest level since July 2002. 

Political uncertainty, budget difficulties and concerns about public debt have increased the risk premium investors demand for holding French government bonds. Meanwhile, global equity weakness and geopolitical tensions have supported safe-haven demand for US Treasuries. 

The reversal in the relationship between French and US yields highlights growing divergence across sovereign debt markets. Persistent pressure on French bonds could weigh on the euro and complicate the European Central Bank's monetary policy outlook.