--- title: France is likely to face even higher borrowing costs due to its degrading creditworthiness, warns Vanguard description: "France now pays more to borrow than Italy.\n\nAnd Vanguard is warning the pressure could intensify.\n\nThe $12 trillion asset manager sees deteriorating creditworthiness, political paralysis and an election that could bring further fiscal loosening.\n\nThe bond market is already sending a message:\n\nšŸ“ˆ French 10-year yields topped 4.8%, their highest since 2008.\nšŸ“ˆ The spread over Germany briefly exceeded 120 basis points.\nšŸ“ˆ Franceā€™s borrowing premium over Italy reached a record.\n\nMeanwhile, the deficit is expected to reach 5.5% of GDP this year. Next yearā€™s planned debt issuance: a record ā‚¬340 billion.\n\nVanguard sees a German spread above 150 basis points as a strong possibility if public finances worsen.\n\nSome investors see a buying opportunity, arguing the risks are already priced in.\n\nBut the central question remains:\n\nCan France restore fiscal credibility before markets demand an even higher price?\n\nSource: FT" image: https://blog.syzgroup.com/hubfs/1790769054884.jpg --- [![Syz Private banking](https://blog.syzgroup.com/hs-fs/hubfs/Logo.png?width=140&name=Logo.png "Syz Private banking")](https://www.syzgroup.com/fr) ## **Thinking** out loud [Subscribe](https://25733253.hs-sites-eu1.com/newsletter-signup?hsLang=en) [![Contact Us](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2) - [OUR SERVICES](https://www.syzgroup.com/en/private-banking) - [ABOUT SYZ](https://www.syzgroup.com/en/about/welcome-to-syz) - [CAREERS](https://www.syzgroup.com/en/careers) - [PRESS](https://www.syzgroup.com/en/news) - [Blog Homepage](https://blog.syzgroup.com) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thoughts/tag/the-week-in-seven-charts) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Fixed Income Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [Equity Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [CONTACT](https://www.syzgroup.com/en/contact-us/form) - [ENGLISH](https://www.syzgroup.com/) - [FRANƇAIS](https://www.syzgroup.com/fr) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Weekly Fixed Income](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [The week in seven charts](https://blog.syzgroup.com/slow-food-for-thoughts/tag/the-week-in-seven-charts) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Our Services](https://www.syzgroup.com/en/private-banking) - [About Syz](https://www.syzgroup.com/en/about/welcome-to-syz) - [Careers](https://www.syzgroup.com/en/careers) - [Press](https://www.syzgroup.com/en/news) - [Contact](https://www.syzgroup.com/en/contact-us/form) - [English](https://www.syzgroup.com/) - [FranƧais](https://www.syzgroup.com/fr) ## **Sign-up** for our newsletter This website uses cookies to enhance user navigation and to collect statistical data. 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The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. 30 Sep 2026 - - - #### France is likely to face even higher borrowing costs due to its degrading creditworthiness, warns Vanguard France now pays more to borrow than Italy. And Vanguard is warning the pressure could intensify. The $12 trillion asset manager sees deteriorating creditworthiness, political paralysis and an election that could bring further fiscal loosening. The bond market is already sending a message: šŸ“ˆ French 10-year yields topped 4.8%, their highest since 2008. šŸ“ˆ The spread over Germany briefly exceeded 120 basis points. šŸ“ˆ Franceā€™s borrowing premium over Italy reached a record. Meanwhile, the deficit is expected to reach 5.5% of GDP this year. Next yearā€™s planned debt issuance: a record ā‚¬340 billion. Vanguard sees a German spread above 150 basis points as a strong possibility if public finances worsen. Some investors see a buying opportunity, arguing the risks are already priced in. But the central question remains: Can France restore fiscal credibility before markets demand an even higher price? Source: FT [#Fixed Income|](https://blog.syzgroup.com/syz-the-moment/tag/fixed-income) [#europe](https://blog.syzgroup.com/syz-the-moment/tag/europe) ![France is likely to face even higher borrowing costs due to its degrading creditworthiness, warns Vanguard](https://blog.syzgroup.com/hubfs/1790769054884.jpg) ![France is likely to face even higher borrowing costs due to its degrading creditworthiness, warns Vanguard](https://blog.syzgroup.com/hubfs/1790769054884.jpg) #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [Fixed Income](https://blog.syzgroup.com/syz-the-moment/tag/fixed-income) #### [The longest duration Treasury bond ETF is now down 67% from its peak in March 2020.](https://blog.syzgroup.com/syz-the-moment/the-longest-duration-treasury-bond-etf-is-now-down-67-from-its-peak-in-march-2020?hsLang=en) How is that possible? The 30-Year Treasury yield has moved from an all-time low of 0.8% in March 2020 up to 5.6% today. Long duration + Rising interest rates from all-time low levels = Pain Source: Charlie Bilello **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 29/09/2026 [Fixed Income](https://blog.syzgroup.com/syz-the-moment/tag/fixed-income) #### [Jim Bianco turns bullish on bonds stating ā€œIā€™m getting a big fat cushion for buying bonds at 5.2%ā€](https://blog.syzgroup.com/syz-the-moment/jim-bianco-turns-bullish-on-bonds-stating-im-getting-a-big-fat-cushion-for-buying-bonds-at-5.2?hsLang=en) Source. Bloomberg, Coffee Capital **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 29/09/2026 [Fixed Income|](https://blog.syzgroup.com/syz-the-moment/tag/fixed-income) [Central banks](https://blog.syzgroup.com/syz-the-moment/tag/central-banks) #### [Another day, another multi decade high for US bond yields](https://blog.syzgroup.com/syz-the-moment/another-day-another-multi-decade-high-for-us-bond-yields?hsLang=en) Interestingly, US10Y, US20Y, and US30Y have all jumped by 40 bps on average ever since the Treasury Secretary said "I am the house now, bet against me if you dare" US10Y is now the highest since 2007. US20Y and US30Y are both the highest since 2002. Turns out the bond vigilantes took that dare. Source: Bull Theory **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 29/09/2026 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. [Discover more](https://blog.syzgroup.com/syz-the-moment) ## **Thinking** out loud Sign up for our weekly email highlighting the most popular posts. 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