Update
French Corporate Bonds Yield Gap Widens
French corporate bonds are now trading at lower yields than French government bonds, with $241 billion in corporate bonds at lower yields compared to $14 billion at the start of 2026. This represents a 1,621% increase. Approximately 38% of high-rated French corporate debt is now trading at lower yields than government bonds of similar maturity. Investor concerns about France's deteriorating fiscal situation are causing the gap between corporate and government bond yields to widen, making internationally exposed companies like L'Oreal and TotalEnergies safer alternatives to French government debt, unlike French banks which remain more exposed to sovereign risk.