French Bond Risk Premium Over Italy Hits Record 30 Basis Points

The inversion matters more than the level: France, long treated as the euro area's core credit, is now priced as the weaker sovereign against a periphery name. That shift is a signal about fiscal credibility and political risk premia rather than about Italy's improvement alone. Whether this spread stays inverted — and whether it widens further — is the open question for euro-area rates and for anyone holding core European duration.