French 10-year government bond spreads rise to 120 basis points, next year's net issuance may reach a record 340 billion euros

(1) Investors anticipate possible political turmoil next year, with France's bond risk indicator once again reaching a critical level. (2) Investors are demanding an extra yield of 120 basis points for France's 10-year government bonds over German bonds of the same maturity, marking the first occurrence since 2012. (3) France's debt agency plans a net issuance of 340 billion euros in medium- and long-term government bonds next year, after deducting buybacks, setting a new historical high.