French Bond Yields Slip, Narrow Gap with Italy Amid Debt Concerns

2025-09-18 07:31 By Joana Ferreira 1 min. read

France’s 10-year government bond yield eased to 3.48% after the US Federal Reserve delivered its first rate cut of the year.

While acknowledging signs of a cooling labor market, Fed Chair Jerome Powell framed the move as a risk-management cut, pushing back on expectations for aggressive easing and stressing that the central bank does not need to move quickly on rates.

In the euro area, policymakers have also struck a cautious note.

ECB officials continue to highlight risks from tariffs, sticky services inflation, rising food prices, and uncertain fiscal policy.

Meanwhile, French borrowing costs are drawing increased scrutiny.

For the first time, French 10-year yields matched Italian equivalents, a convergence driven by months of rising French yields amid concerns over public debt sustainability and weak economic growth, in contrast with improving investor sentiment toward Italy.



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