French yields at 2008 crisis levels as budget battle looms

• French borrowing costs (OATs) have reached their highest level since the 2008 global financial crisis.
• Far-left candidate Jean-Luc Mélenchon proposed canceling French debt held by the European Central Bank.
• Far-right candidate Marine Le Pen pledged to drastically reduce state spending and introduce a 'golden rule' for the deficit into the constitution.
• Investors are concerned about the impact of these proposals on public finances, with French stocks (CAC) and banks showing negative reactions.
• An upcoming Fitch ratings review for France is anticipated, adding to market uncertainty.

French borrowing costs have surged to 2008 crisis levels as presidential candidates debate economic policies ahead of next year's vote. Proposals from far-left and far-right candidates regarding national debt and spending cuts are causing investor concern, leading to a 'nightmare scenario' warning for public finances and impacting French markets.