Cai Tang Macro: The borrowing cost of the French government may exceed that of Italy.

According to Capital Economics, the borrowing costs of the French government will soon exceed those of Italy, reflecting France's worsening debt dynamics. The organization's Chief European Economist, Andrew Kenningham, pointed out in the report, "Given that Italy has a heavier debt burden and a lower trend growth rate, this forecast seems surprising. But it reflects the fact that France's debt dynamics are worse and its political stability is weaker." Capital Economics predicts that by the end of 2023, the yield on French 10-year government bonds will rise to 3.75%, while the yield on Italian government bonds during the same period may remain around 3.50%.