Core Viewpoint - The French bond market is facing significant turmoil, with the 30-year bond yield reaching its highest level since 2009, driven by concerns over the country's fiscal outlook following the breakdown of budget negotiations [1][4]. Group 1: Market Impact - The yield on France's 30-year bonds rose by 7 basis points to 4.525%, while the 10-year bond yield increased by 6 basis points to 3.614%, nearing a nine-month high [1]. - The failure of budget negotiations has led to a loss of market confidence, posing a major setback for Prime Minister Sébastien Lecornu, who had aimed to pass the national budget by year-end [5]. Group 2: Fiscal Policy Implications - The breakdown of budget talks means the government will have to extend the budget until 2026, severely limiting its ability to reform public finances [4]. - The inability to pass new spending projects, including a proposed €6.5 billion increase in defense spending, highlights the constraints imposed by the budget extension mechanism [5]. Group 3: Economic Outlook - The stalled budget will hinder France's efforts to reduce its fiscal deficit, with plans to bring the deficit below 5% of GDP by 2026 and to 3% by 2029, as required by the European Commission [6]. - The French central bank governor indicated that the budget extension would result in a deficit significantly above ideal levels, lacking any cost-saving or tax measures [6]. Group 4: Political Dynamics - Prime Minister Lecornu's failure to push the budget through is attributed to his decision to forgo a constitutional power that would allow the government to pass the budget without parliamentary vote, risking a vote of no confidence [7]. - Efforts to negotiate compromises with the center-left Socialist Party have not resolved the deadlock, as numerous amendments proposed by opposition parties have stalled the legislative process [7].

Core Viewpoint - The yield on French 30-year government bonds has reached its highest level since 2009, influenced by a report from the German central bank predicting stronger economic performance in Germany, which negatively impacted long-term bond performance [1] Group 1: Bond Yield Changes - The yield on French 30-year government bonds increased by 7 basis points to 4.525% [1] - The yield on French 10-year government bonds rose by 6 basis points to 3.614%, nearing a nine-month high [1] - The yield on German 30-year government bonds climbed by 6 basis points to 3.55%, marking the highest level since 2011 [1] Group 2: Economic and Political Context - The increase in bond yields follows a statement from French Prime Minister Sébastien Lecornu indicating that the budget proposal will not be voted on before the end of the year [1]

Core Viewpoint - The article discusses the recent movements in European government bond yields, highlighting increases in various countries' long-term and short-term bond yields, indicating a trend of rising interest rates in the region [1] Group 1: France - The yield on France's 10-year government bonds rose by 2.8 basis points to 3.489% [1] - The yield reached a daily high of 3.507% before retracting some gains [1] - The 2-year and 30-year French bond yields increased by 0.6 basis points and 4.0 basis points, respectively [1] Group 2: Italy - Italy's 10-year government bond yield increased by 2.0 basis points, reaching 3.473% [1] Group 3: Spain - Spain's 10-year government bond yield rose by 1.6 basis points to 3.225% [1] Group 4: Greece - Greece's 10-year government bond yield increased by 1.5 basis points, reaching 3.343% [1]

Market Insights - President Trump plans to appeal the global tariff ruling to the U.S. Supreme Court, citing an economic emergency in the U.S. He warns that a potential loss could lead to unprecedented market shocks [1] - Nearly 600 economists signed an open letter warning that the potential dismissal of Federal Reserve Governor Lisa Cook could threaten the independence of the Fed and erode trust in the U.S. financial system [1] - The ISM manufacturing index for August rose slightly to 48.7 but remains below the market expectation of 49, marking the sixth consecutive month below the neutral line [3] Economic Indicators - Japan's CPI for August increased by 1.7%, with the growth rate narrowing by 0.4 percentage points, the lowest since November of the previous year [4] - Eurozone's CPI for August rose by 2.1% year-on-year, while core CPI slightly decreased to 2.3%. Service prices saw a notable slowdown, increasing by 3.1% [3] Global Market Dynamics - The Dow Jones Industrial Average fell by 0.55% to 45,295.81 points, while the S&P 500 and Nasdaq Composite dropped by 0.69% and 0.82%, respectively [5] - Gold futures on COMEX rose by 1.51% to $3,599.5 per ounce, reaching a historical high [5] - U.S. oil futures increased by 1.56% to $65.62 per barrel, and Brent crude rose by 1.39% to $69.10 per barrel [6] Bond Market - The yield on 30-year German bonds reached its highest level since 2011, while French 30-year bond yields hit a new high since 2009 [7] - U.S. Treasury yields increased across various maturities, with the 10-year yield rising by 3.50 basis points to 4.260% [7] Currency Movements - The U.S. Dollar Index rose by 0.66% to 98.32, with the Euro and British Pound both declining against the dollar [8]

Core Viewpoint - The yield on France's 30-year government bonds has reached its highest level since June 2009, at 4.51%, with an increase of 6 basis points in a single day [1] Group 1 - The 30-year bond yield in France has seen a significant rise, indicating potential shifts in investor sentiment and economic outlook [1] - The current yield level reflects broader trends in the bond market and may influence future borrowing costs for the government [1]

Group 1 - The yield on French 10-year government bonds increased by 9.3 basis points, reaching a daily high of 3.511%, approaching the peak of 3.631% from March 6 [1] - The yield on Italian 10-year government bonds rose by 6.9 basis points, reported at 3.595% [1] - The yield on Spanish 10-year government bonds also increased by 6.9 basis points, reaching 3.370% [1] Group 2 - The yield on Greek 10-year government bonds rose by 7.8 basis points, reported at 3.447% [1] - The yield on French 30-year government bonds increased by 8.5 basis points, reaching 4.393%, nearing the peak of 4.522% from November 16, 2011 [1] - The yield on French 2-year government bonds rose by 4.0 basis points, stabilizing near the daily high [1]

Core Viewpoint - European bond yields have seen significant increases, indicating rising borrowing costs and potential implications for economic conditions in the region [1] Group 1: France - The yield on France's 10-year government bonds rose by 9.8 basis points to 3.472%, approaching the March 25 peak of 3.514%, with a weekly increase of 11.9 basis points [1] - The yield on France's 30-year government bonds increased by 10.4 basis points to 4.330%, nearing the November 16, 2011 peak of 4.522%, with a weekly rise of 17.5 basis points [1] Group 2: Italy - The yield on Italy's 10-year government bonds rose by 10.1 basis points to 3.592%, with a weekly increase of 11.0 basis points [1] Group 3: Spain - The yield on Spain's 10-year government bonds increased by 8.7 basis points to 3.352%, with a weekly rise of 9.5 basis points [1] Group 4: Greece - The yield on Greece's 10-year government bonds rose by 9.9 basis points to 3.445%, with a weekly increase of 11.1 basis points [1]

Group 1 - The yield on France's 30-year government bonds has risen by 2 basis points to 4.21%, marking the highest level since 2011 [1]