France's 10-year borrowing cost tops 5% for the first time since 2002

France's 10-year bond yield

5.11 %

France's benchmark 10-year yield rose to 5.11 per cent on Thursday, after touching its highest level since July 2002.

The premium investors demand over German bonds widened to 173.58 basis points, its widest since November 2011 during the euro zone debt crisis.

Lawmakers are struggling to pass a 2027 budget with €43 billion in spending cuts, and France's debt stands at about 120 per cent of GDP, double the EU limit.

Moody's decision on France's rating

Moody's is due to decide on Friday on France's credit rating, and most economists expect a downgrade that would raise the government's borrowing costs.