France's 10-Year Borrowing Rate Hits 4.94%, Highest Since 2002 as Debt Concerns Mount

France's 10-year borrowing rate climbed to 4.94% on Thursday from 4.85% at Wednesday's close, the highest level since 2002, as investors show growing mistrust of French debt. The rate posted its largest quarterly increase in nearly four decades and its sharpest monthly rise since 2022. The Franco-German spread widened to roughly 1.30 percentage points, with Germany's rate at 3.61%, the highest gap in 14 years. The surge came as the government presented the outline of a potential 2027 state budget. Prime Minister Sébastien Lecornu, who has pledged €54 billion in savings, said political uncertainty ahead of the presidential election is adding pressure. French public debt stands at €3.596 trillion, or 119% of GDP. European markets opened lower, with the CAC 40 down over 1.4%, the FTSE 100 losing 1.8% and the DAX trading 1.1% lower.