⏱ 1 min read
Background
French public debt is close to 120% of gross domestic product, with a budget deficit above 5%. On 21 October 2026, the yield on France's ten-year government bond reached 5.005%, a level unseen since 2002.
The key points
The property market near the Swiss borders could suffer from rising mortgage costs in France. Higher sovereign yields can help make home loans more expensive.
According to private bank ODDO BHF Suisse, requests from French people wishing to open an account in Switzerland are rising sharply. Some wealth managers no longer include French bonds in their mandates.
Key figures
- Yield on the French ten-year OAT on 21 October 2026: 5.005%.
- Yield on 18 September 2026: around 4.53%.
- Spread with Germany: 157 basis points.
- Spread with Italy: more than 40 basis points, to France's disadvantage.
What it means for businesses
A one-point rise in the rate on 100 billion euros of new issuance means one billion euros of extra interest per year for the French state. Budget uncertainty and political instability are pushing investors to demand higher returns.
What's next
The spread between France and Germany has quadrupled since the summer, according to the Tribune de Genève. It is approaching levels not seen since 2011.
Further reading
Sources
- Tribune de Genève – Cross-border workers: French debt threatens Lake Geneva property
- FranceTransactions.com – French debt yield exceeds 5% over 10 years
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