French Bonds Under Pressure From Global, Domestic Factors
French government bonds are experiencing pressure from both global and domestic factors, pushing borrowing costs to multi-decade highs, according to Morgan Stanley strategists. Domestic concerns include potential budget deficit increases in 2026 and uncertainty surrounding the 2027 budget's approval.
French government bonds are under pressure from both global and domestic factors, with Morgan Stanley strategists saying in a note that borrowing costs have risen to multidecade highs. Domestic pressures include concern over a possible wider 2026 budget deficit and uncertainty around approval of the 2027 budget.