French Bond Rout Upends Hierarchy in Europe's Debt Markets.

French bonds, traditionally considered safe assets, have experienced a sell-off due to political risk and now yield more than Portuguese debt and only slightly less than Spanish debt. This shift in the hierarchy of European sovereign debt markets is significant, as it places France on equal footing with lower-rated economies that were once a threat to the euro zone. The sell-off was compounded by rumors of President Emmanuel Macron's resignation, raising concerns about France's public finances and the future of his pro-business agenda. This development highlights the importance of politics and fiscal outlook in the euro bond markets and raises questions about the stability of other countries, such as Italy. [Extracted from the article]