EUR/USD in focus as French-German 10Y spread tops 150bp on fiscal worries

The source reports no EUR/USD price move, pip figure or technical levels. Its focus is stress in French government debt. The spread between French and German 10-year government bonds surged above 150 basis points last week, its widest level since the euro-area debt crisis. French borrowing costs approached 5%. The selloff reflects growing concern over France's deficit, its debt trajectory and political fragmentation ahead of the 2027 presidential election. The article compares the episode to the UK's 'Liz Truss moment,' when bond market pressure forced policymakers to rethink fiscal plans. It notes that the market reaction matters because it can create a feedback loop, and it argues that this pressure is ultimately a good thing because it pushes policymakers toward a policy rethink. The source does not discuss central bank action. For euro traders, French sovereign spreads and fiscal policy signals out of Paris are key fundamental risk factors to monitor.