French 10-year bond risk premium to Germany jumps 33 bps, largest weekly rise on record

A record weekly widening in the French-German spread reframes euro-area sovereign risk from a peripheral story to a core one, with political instability now priced directly into France's funding costs. The focus on Moody's puts ratings agencies at the center of near-term price discovery, and any downgrade would test how much of this move is already reflected in spreads. Whether the premium stabilizes or extends is the open question, and it matters well beyond France: it sets the tone for how markets treat core euro sovereigns with fiscal and political stress.