France Bond Yields Top Italy and Greece as ECB Crisis Rescue Tool Is Blocked

French government bond yields have jumped above those of Italy and Greece, marking a historic spread inversion as investors price France as riskier while the ECB’s crisis tool is legally blocked. In the week ending October 3, 2026, France’s 10-year OATs briefly reached 4.989% on October 1—near 5% for the first time since 2002—while UK 30-year gilt yields hit 6.029% the same day. The euro slid to a 17-month low, meaning the dollar buys more in Paris. Analysts point to the ECB’s Transmission Protection Instrument (TPI), which can only buy bonds where yield widening is “unwarranted” by fundamentals; France is deemed warranted. France’s spread versus German Bunds widened to roughly 152 basis points on October 2, approaching levels last seen during the 2011 crisis.