French Debt Premium Hits Highest Since April on Confidence Vote

French bonds fell as investors hedged for more political instability after Prime Minister Francois Bayrou said he would call a confidence vote.

The yield on 10-year French debt rose nine basis points to 3.51%, leading global bond market losses. The nation’s borrowing premium over Germany widened by five basis points to close at 75 basis points, the most since April and up from 65 in late July. The moves accelerated toward the end of Monday’s session amid thin liquidity, with the UK on a public holiday.