The yield on French 10-year government bonds rises above 4.8% amid ongoing fiscal concerns.

智通财经2026/10/07 09:06

Show original

(1) The yield on French 10-year government bonds has risen above 4.8%, approaching the 20-year high of over 5% reached late last week, as fiscal concerns persist and oil prices return to focus. (2) France's borrowing costs are climbing amid elevated energy prices, rising inflation, and higher interest rate expectations, with its debt particularly impacted by concerns over whether the government can control spending before the 2027 presidential election. (3) The Paris 2027 budget plan proposes spending cuts, aiming to reduce next year's deficit to 5% of GDP, but a lack of credibility and a divided parliament may make this target hard to achieve. (4) Meanwhile, Brent crude is rising, reinforcing market expectations of further rate hikes by major central banks. (5) The market currently expects the European Central Bank to raise rates twice more by March 2027, with swap prices indicating about 75 basis points of tightening by the end of next year.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

(1) The yield on France’s 10-year government bonds has risen above 4.8%, approaching the more than 20-year high above 5% touched late last week, as fiscal concerns persist and oil prices return to focus.(2) France’s borrowing costs have been rising against the backdrop of high energy prices, rising inflation, and rate hike expectations, with French debt particularly pressured by concerns over whether the government can control spending before the 2027 presidential election.(3) Paris’ 2027 budget plan proposes spending cuts, aiming to reduce next year’s deficit to 5% of GDP, but insufficient credibility and a divided parliament may make achieving that target difficult.(4) Meanwhile, Brent crude oil has risen, reinforcing market expectations of further rate hikes by major central banks.(5) The market currently expects the European Central Bank to raise rates two more times by March 2027, with swap prices showing around 75 basis points of tightening by the end of next year.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

(1) El Niño continues to strengthen, with the latest August Oceanic Niño Index reaching 2.2°C, firmly placing it in the "very strong" category. (2) In comparison, during the 2015-2016 super El Niño event, this index was around 1.7°C in August and subsequently peaked at 2.6°C in December. (3) If this seasonal pattern persists, the coming months could point to an unusually strong or even potentially record-breaking El Niño. (4) The impact on commodities is already evident on both supply and demand sides. (5) Weather-related supply risks are supporting agricultural markets such as sugar, cocoa, and coffee, while the possibility of a milder winter in the Northern Hemisphere could suppress heating demand and dampen natural gas consumption. (6) The more persistent and stronger the current El Niño becomes, the greater the risk that weather will become a more significant driver of commodity prices by 2027.

智通财经•2026/10/07 11:36

The Iranian Revolutionary Guard says it will soon block the illegal routes in the Strait of Hormuz.

Energy and commodities analyst Blas: The Iranian Revolutionary Guard stated it will "soon" block the "illegal" passage of the Strait of Hormuz. In fact, this is the first time the Iranian Revolutionary Guard has publicly admitted that the waterway is no longer closed.

智通财经•2026/10/07 11:26