Story perspectives
Italy's Bond Yields Match France Amid Political Turmoil
9/19/2025
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Story summary
- Italy's 10-year government bond yield has equaled France's for the first time, signaling investor caution following France's government collapse.
- The yield spread narrowed to zero, down from 50 basis points in April and 200 during the 2020 COVID crisis.
- Fitch downgraded France's credit rating due to political instability and fiscal concerns.
- Italy's political stability has boosted investor confidence, increasing foreign bond purchases.
- France's economy is projected to grow only 6.7% by 2030, one of the lowest in the EU.
