Bonds & rates news.

French 10-year bond yield tops 5% for first time since 2002

France's 10-year OAT yield has broken above 5%, a level last seen in 2002, as debt worries and street unrest shake confidence in the government's finances. The move widened the gap with German Bunds and pulled US Treasury yields lower on safe-haven buying.

French yield surge revives old fears over bank-sovereign debt links

A sharp rise in euro zone government borrowing costs, driven mainly by France, has rekindled investor worries about how closely lenders are tied to their home governments' finances. European bank shares have slid about 10% in six weeks.

India’s 10-year yield climbs to 7.44% as Brent nears $112

India's benchmark bond yield rose to its highest since March 2023 after Brent crude approached $112 a barrel, reviving inflation worries. Traders now await the Reserve Bank of India's policy minutes.

Bessent says France’s bond turmoil unlikely to spread to other markets

US Treasury Secretary Scott Bessent said he does not expect the unrest in France's bond market to spill over elsewhere, even as the country's debt has lagged peers amid political turmoil.

Record bidding at Japan’s 20-year bond sale boosts the yen

A 20-year Japanese government bond sale drew its strongest demand in a month, helping the yen climb 0.2% to 158.15 per dollar, while the euro also edged up as unrest in France and Italy unsettled markets there.

US CPI beats on shelter; December Fed cut odds fall to 38%

Headline CPI rose 3.3 percent against 2.9 expected, driven by shelter. The dollar strengthened and the two-year yield added 9 basis points.