The 10-year borrowing rate of the French State reached a ten-year high on Monday on the debt market, in the wake of the victory of the far right in the Italian legislative elections, which brings more uncertainties regarding the outlook for the euro zone.
The yield on French ten-year debt reached 2.71% around 1:30 p.m., a level not seen since June 29, 2012 (2.72%). This new summit comes on the day the French government presents a debt-constrained 2023 draft budget.
Indeed, the government intends to raise 270 billion euros of debt on the financial markets in 2023, a record after 260 billion euros in 2021 and 2022, announced Agence France Trésor on Monday on the sidelines of the presentation of the budget of next year. Something to make bankers salivate…