Paris, August 18 (QNA) - French 10-year bond yields rose Tuesday to their highest level since 2008, after surpassing the 4% mark.

This comes amid growing concerns over inflation and the rising cost of government borrowing, against the backdrop of the war in the Middle East and skyrocketing oil prices.

The yield on French 10-year bonds, the benchmark, reached 4.10% during today’s trading, its highest level since November 2008, when it reached 4.20% at the height of the global financial crisis.

The yield on German 10-year bonds, the benchmark for the eurozone, also reached 3.26%, its highest level since 2011.

The rise in bond yields comes as France faces mounting pressure over the size of its public debt, which stood at around 117% of gross domestic product in July, while French Economy Minister Roland Lescure said that preparing the 2027 budget faces difficulties.

The yield on French 30-year bonds reached 4.90%, also its highest level since 2008, signaling declining investor confidence in the long-term sustainability of countries’ public finances.

Yields reflect the level of interest that investors demand to lend to governments, as concerns over inflation prompt creditors to demand higher yields to offset the decline in the real value of loans, increasing the cost of financing and servicing debt. (QNA)