French bond risk premium rises
France's 10-year government bond yield fell 5 basis points to 5.04% , but its weekly increase reached approximately 27 basis points.
According to Reuters' Friday market close, selling in French government bonds pushed the country's sovereign risk premium to its highest level since the 2011 eurozone debt crisis. The euro traded around $1.1191, while the STOXX 600 closed at 635.77.
Political tensions and budget uncertainty in France are increasing concerns about government borrowing costs. A higher risk premium could fuel volatility in European bond markets and pressure financial institutions. Nevertheless, French yields eased slightly during Friday's session.
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