The yield spread between 10-year French and German government bonds has widened to 159.4 basis points, reaching its widest level in 15 years.

(1) As concerns over France's fiscal outlook weigh on the markets, investors are demanding higher risk premiums for holding French government bonds. (2) The closely watched spread between French and German 10-year government bond yields widened by 6 basis points to 159.4 basis points, the widest in 15 years. (3) This yield spread is considered a key indicator for measuring credit risk in the eurozone. (4) Since the end of September, this spread has expanded significantly as market worries have intensified over France's debt burden and the government's ability to push its budget plan through. (5) Meanwhile, rising energy prices are also pressuring the bond market. European benchmark natural gas futures surged about 4%, and Brent crude oil rose to around $110 per barrel. (6) The yield on France's 10-year government bond rose to 5% for the first time since 2002.