Eurozone Bond Yields Consolidate Near Multi-Year Highs Amid French Fiscal Concerns

Eurozone government bond yields held largely flat on Tuesday near multi-year highs as markets weighed French fiscal strains, firm energy prices, and heavy corporate debt supply. Germany's 10-year Bund yield held near 3.477%, while France's 10-year OAT yield hovered near 4.888%. This follows Monday's widening of the French-German 10-year spread to 142 basis points, when French yields touched 4.90%. Investor concerns remain focused on France's public debt nearing 120% of GDP, a projected 5.4% deficit, and political challenges facing €54 billion in proposed budget cuts.