1548 GMT - The yield on 10-year French government bonds hits its highest since 2011 amid budget concerns and as European bond yields are lifted by Japanese government-bond yields hitting multi-year highs. "It is now certain that France will start 2026 without a new budget" after lawmakers recently rejected budget proposals, Commerzbank's Vincent Stamer says in a note. The current situation "shows how deadlocked French politics is at present," he says. Although an emergency budget is being worked on, a breakthrough in negotiations looks unlikely barring new elections and France's budget deficit looks set to stay above 5%, he says. The French 10-year yield rises to 3.634%, LSEG data show. The German 10-year Bund yield also hits a 9-month high of 2.917%. (jessica.fleetham@wsj.com)
(END) Dow Jones Newswires
December 22, 2025 10:49 ET (15:49 GMT)
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