French Bonds Get a Lifeline With Spread Near Year-High on Budget

Bond investors are giving embattled French Prime Minister Sebastien Lecornu a chance to fix the nation’s finances, but their patience will only go so far.

Less than three weeks on the job, and with the gap between 10-year French and German bond yields at the widest since January, Lecornu must placate political rivals opposed to deep spending cuts — while simultaneously appeasing civil servants who say there’s no room for half measures as the country tries to contain a €3.3 trillion ($3.9 trillion) debt pile.