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Story summary
- Investors sold French bonds in early October 2026, pushing the 10-year yield to its highest since 2002.
- The sell-off redirected purchases toward German Bunds, making France the riskiest sovereign and Germany the safe-haven.
- The France-Germany spread hit almost 160 basis points, the widest level since 2012.
- France said deficit will exceed the 5 % of GDP target and announced fiscal tightening that investors doubt will be implemented.