The risk premium on French 10-year government bonds rose to 120 basis points.

Investors anticipate possible political turmoil next year, and France's bond risk indicator has once again hit a key threshold. The extra yield investors demand to hold French 10-year government bonds instead of safer German bonds of the same maturity rose to 120 basis points, the first time since 2012. France's debt agency plans a record-high gross issuance of medium- and long-term government bonds next year, totaling 340 billion net of buybacks.