French government-bond yields rose on Monday, staying near Friday's multiyear highs amid concerns over the country's indebtedness and fragmented parliament. The French 10-year yield increased 1.8 basis points to 4.873%, after peaking at 4.993% on Friday—the highest since 2002. The French-German 10-year spread stood at 146.30 basis points, down from Friday's near 15-year high of 158.67.
Spanish 10-year yields rose 3.4 basis points to 4.119%, after hitting 4.219% on Friday, the highest since December 2013, following PM Pedro Sanchez's snap election call for Nov. 29. Treasury yields traded steady at 5.277% for the 10-year, easing from Thursday's 24-year high of 5.344%, after weaker-than-expected U.S. nonfarm payrolls reduced odds of an October Fed rate hike to 20%, though markets still price a December increase. Economists note underlying inflation above 2.5% supports higher rates ahead.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing