French 10-year yields just crossed 5.05% this morning.
For context: that's higher than Greece. A country that defaulted 15 years ago.
France — core EU member, second-largest economy in the eurozone — is now paying more to borrow than a reformed basket case.
This isn't a currency crisis. It's a fiscal credibility crisis. Markets are pricing in years of political dysfunction, unfunded promises, and zero appetite for tough choices.
The bond market doesn't care about your ideology. It cares about math. And right now, France's math doesn't add up.
Watch this space. When major sovereign bond markets reprice, things tend to move faster than anyone expects.
For context: that's higher than Greece. A country that defaulted 15 years ago.
France — core EU member, second-largest economy in the eurozone — is now paying more to borrow than a reformed basket case.
This isn't a currency crisis. It's a fiscal credibility crisis. Markets are pricing in years of political dysfunction, unfunded promises, and zero appetite for tough choices.
The bond market doesn't care about your ideology. It cares about math. And right now, France's math doesn't add up.
Watch this space. When major sovereign bond markets reprice, things tend to move faster than anyone expects.