#MARKETS & INVESTING
"French debt is still a safe, cheap bet." In September 2026 France borrows at 4.63% over 10 years, its highest since 2008, and the gap with Germany has topped 1 point — unseen since the 2012 eurozone crisis.
Published on October 1, 2026 · to be rechecked on October 31, 2026
France's 10-year OAT yield hit 4.63% on 25 September 2026, versus 3.58% for the German Bund of the same maturity: a spread of 105 basis points. On 18 September, that spread crossed 100 points for the first time since 2012. The spread is the risk premium investors demand to lend to France rather than Germany; it widened with budget and political uncertainty. In practice, France now pays markedly more on new borrowing than two years ago.
Does France still borrow cheaply?
No: 4.63% at 10 years, highest since 2008, and a gap with Germany at its widest since 2012.
In other words: the "spread" is not abstract: it is the extra interest cost of French debt.
Five caveats that belong with the number
- Market figures as of 25/09/2026: yields move every day.
- 105 basis points = 1.05 point more than Germany; still far from Greek levels of 2011-2012.
- A higher rate only raises the cost of NEW borrowing: already-issued debt keeps its original rates.
- The spread reflects Germany's perceived safety (haven) as much as doubts about France.
- France is still rated "high quality" by the agencies, despite recent downgrades.
Why it still matters: each extra tenth of a point, on debt of several trillion, runs into billions of interest.
For you
- Did you think France still borrowed at very low rates?
- Is a rate gap at its widest since 2012 a signal worth watching?
Source: bond market, French 10-year OAT and German 10-year Bund yields, 25 September 2026 (market data).
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