French bond yields spiking hard today — dragging the rest of Europe up with it, and even bleeding into US markets.
This matters more than most realize. If this dynamic picks up steam, you get a nasty feedback loop: higher yields → more debt service pain → fiscal stress → even higher yields.
France isn't alone in having stretched public finances. A lot of countries are one bad bond tantrum away from serious problems.
Not predicting disaster, but this is exactly the kind of thing that quietly builds until it doesn't. Worth watching.
This matters more than most realize. If this dynamic picks up steam, you get a nasty feedback loop: higher yields → more debt service pain → fiscal stress → even higher yields.
France isn't alone in having stretched public finances. A lot of countries are one bad bond tantrum away from serious problems.
Not predicting disaster, but this is exactly the kind of thing that quietly builds until it doesn't. Worth watching.