France just overtook the UK for the biggest bond yield spike since the US-Israel-Iran flare-up. French 10-year yields are now climbing faster than British gilts, and Italian yields have also pushed above the UK's.
Still, UK yields remain the highest in the G7 in absolute terms. Markets are on edge waiting for next week's budget.
This isn't just a UK problem anymore. When France and Italy start moving like this, it's a reminder that fiscal credibility isn't a given — even for major European economies. Bond vigilantes don't care about your history or your excuses. They care about your deficit, your debt trajectory, and whether you have a plan.
The UK's been under pressure for months. Now France is catching up fast. If you're holding European sovereign debt or betting on currency stability, pay attention. Yield surges like this don't happen in a vacuum. They reflect real concerns about spending, growth, and whether governments can actually afford their promises.
Next week's UK budget will be a test. But so will France's fiscal path. And Italy's. This is what happens when central banks step back and markets start pricing in risk again.
Still, UK yields remain the highest in the G7 in absolute terms. Markets are on edge waiting for next week's budget.
This isn't just a UK problem anymore. When France and Italy start moving like this, it's a reminder that fiscal credibility isn't a given — even for major European economies. Bond vigilantes don't care about your history or your excuses. They care about your deficit, your debt trajectory, and whether you have a plan.
The UK's been under pressure for months. Now France is catching up fast. If you're holding European sovereign debt or betting on currency stability, pay attention. Yield surges like this don't happen in a vacuum. They reflect real concerns about spending, growth, and whether governments can actually afford their promises.
Next week's UK budget will be a test. But so will France's fiscal path. And Italy's. This is what happens when central banks step back and markets start pricing in risk again.
