BondsMedium•1 October 2026•
1 min read
French-German Bond Yield Spread Hits Highest Level Since 2012
Key Facts
1The spread between French and German 10-year bond yields widened to 141 basis points, the highest since 2012.
2French Credit Default Swaps (CDS) have more than doubled over the past month on mounting fiscal viability fears.
3The spread between Italy and Germany’s two-year yields jumped 55 basis points, the biggest daily increase since 2020.
The spread between French and German 10-year bond yields widened to 141 basis points, marking the highest level since 2012. ZeroHedge reported that French Credit Default Swaps (CDS) have more than doubled over the past month due to mounting concerns over fiscal sustainability and political upheaval regarding the national budget.
Contagion spread to other Eurozone markets as the gap between Italy and Germany’s two-year yields jumped 55 basis points, the largest daily increase since 2020. In equity markets, Goldman Sachs (GS) closed at $900.36 on September 30, 2026, while JPM was trading at $331.61 on October 1, 2026.