French bond risk has reached its highest level in a month due to concerns about budget negotiations and an upcoming review of the country's sovereign rating.

The premium investors are demanding to hold French debt compared to Germany's has been increasing daily this week, approaching the 80 basis-point mark last seen during the political uncertainty following the snap election in June.

The situation is being closely monitored by market participants as tensions rise, reflecting a broader unease about France's fiscal stability.

The ongoing budget discussions are crucial as they could have a significant impact on investor confidence and the country's financial position in the European market.