Long-term borrowing rates are reaching unprecedented levels not seen in over fifteen years: France now borrows at 4%, Germany at 3.20%, and the United States at 4.70%, while the US 30-year yield climbs to 5.18%, its highest since 2006. Several factors explain this surge: the resumed Middle East conflict pushed oil above 100 dollars per barrel, reigniting inflationary fears, and the ECB raised its rates to 2.25%. France accumulates vulnerabilities with debt at 115% of GDP, growth below 1%, and the inability to adjust its currency within the eurozone, unlike the United States or India which compensate with stronger growth. Consequences are already visible: the average 30-year mortgage rate reaches 6.85% in the United States and stock valuations for growth companies face increasing pressure. Bitcoin trades around 63,883 dollars, down 2.5% over 24 hours and nearly 49% from its October 2025 all-time high, while the Bank of France forecasts growth of only 0.5% in 2026, insufficient to absorb the debt burden.
Source: Read the original article
