French Bonds Have Best Day Since July as Political Risks Ease

French 10-year bonds had their best day in almost three months on optimism budget concessions made by Prime Minister Sebastien Lecornu will help avert a deeper political crisis.

The rally pushed the French-German spread — a key measure of risk — down five basis points to 79 basis points, one of the biggest drops this year and securing the lowest close in more than a month.