French government bond yields surge to new records, Robin Brooks notes

French government bond yields surge to new records, Robin Brooks notes
European bond yields surge to records

Robin Brooks highlights a significant rise in long-term government bond yields for high-debt European countries this week. France stands out, with its 10y10y and 10y20y forward yields reaching all-time highs. Brooks suggests that market patience with fiscal dysfunction in these countries may be diminishing.

Brooks has recently focused on currency volatility as well. He noted that the Japanese yen declined this week even after dovish U.S. inflation surprises and a favorable rate differential in 2026. Earlier, he observed that recent efforts by U.S. and Japanese authorities had not meaningfully slowed yen depreciation.

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