Angel Ubide, head of fixed-income and macroeconomic research at US hedge fund giant Citadel, said in an interview with Reuters that France no longer has any room for error in repairing its public finances. He said that ahead of the 2027 presidential election, pressure from financial markets will push the government to pursue spending restraint, and that it is important not only to hold the presidential election but also to form a parliamentary majority capable of restoring fiscal health. Amid a global bond selloff, France's borrowing costs have surged, and concerns that the country's fragile finances could spill over to other European nations have driven selling of the euro. Ubide noted that for now France does not pose a systemic risk to Europe, saying that discussing a systemic problem in France means discussing a systemic problem in Europe. The yield on France's 10-year government bond briefly topped 5% last week, hitting a 24-year high, while the euro fell below 1.12 dollars on the 5th, touching a 17-month low.
Euro fell below 1.12 dollars, a 17-month low, on concerns over France's fragile finances spilling over to Europe.
France's 10-year yield briefly topped 5%, a 24-year high, as market pressure and fiscal concerns drive a global bond selloff.
