France was not the only country punished in the brutal dumping of government bonds this week, but it was among those that suffered most.
The 10 year OAT yield broke up through 110bp over Bunds this week and has not stopped yet. On Thursday afternoon the spread between the two was 113bp.
The gap had started the year at 82bp and got as tight as 63bp at the end of June. Late last year, even with all France's well known problems, not all market participants believed the spread would ever top 100bp.
Continuing, and still growing, concerns about France’s fiscal and political health have pushed up OATs' risk premium.
Like nearly all major governments, France is facing the conundrum of how to achieve growth amid high inflation and interest rates.
Like many others, France is battling cost pressures exacerbated by the war in the Middle East, which has caused persistently high oil prices. As rates rise, the cost of servicing its bonds goes up — even as it is forced to expand its debt.
But in France's case, to make matters worse, the demand for OATs seems to be struggling to keep up with the supply.
France is coming up to the most painful time of its year — when whoever is its luckless prime minister has to try and pass next year's budget through a bitterly divided National Assembly, most of his members would rather do anything than compromise with their opponents.
Sébastien Lecornu, the present incumbent, will try like his last three predecessors to cut the budget deficit, predicted to be 5.4% of GDP this year. Even if he succeeds, debt is likely to surpass 120% of GDP next year, after a multi-year rise that has outpaced peers.
Once, the market seemed to trust France to square this circle. More than two years of failed attempts have cost the country its credibility.
There had been a degree of optimism that this year might be different, but that has faded since the summer.
Even if by some miracle Lecornu does achieve a consensus on the 2027 budget in the October-November negotiations, the political fragmentation that has plagued France will break out again with next year's presidential election in April.
Markets face only unappealing outcomes, including the threat of a far right victory.
France's challenges include the universal and the unique. Adding them together means 110bp could be the new floor, not ceiling, for its spread over Bunds. So buckle up, there is a likely to be a storm before the market sees a rainbow.