# Bessent Addresses French Bond Turmoil

> U.S. Treasury Secretary Bessent confirms spillover risk contained as safe-haven flows return to U.S. Treasuries.
- Title: Bessent Addresses French Bond Turmoil · BigGo Finance
- Summary: U.S. Treasury Secretary Bessent confirms spillover risk contained as safe-haven flows return to U.S. Treasuries. U.S. Treasury Secretary Scott Bessent says…
- Keywords: scott bessent, french government bonds, us treasuries, emmanuel macron, fannie mae, freddie mac, 10-year treasury yield, france-germany spread, safe haven flows, treasury yields, finance, markets
- Source: BigGo Finance — https://finance.biggo.com/news/3259e04c-c2af-4a33-91c3-41007ecfc22c
- Author: BigGo Finance
- Published: 2026-10-20T23:55:13+00:00
- Read time: 1 min
- Topics: scott bessent, french government bonds, us treasuries, emmanuel macron, fannie mae, freddie mac, 10-year treasury yield, france-germany spread, safe haven flows, treasury yields, finance, markets
## Bessent addresses French bond turmoil
U.S. Treasury Secretary Scott Bessent publicly addressed French bond market turmoil for the first time on October 20.

> I don't expect what's happening in France to spill over
## Spillover risk contained
Bessent states spillover risk to U.S. markets is contained while confirming safe-haven capital flows into U.S. Treasuries.

> We are indeed seeing money flow out of some countries of concern and into US Treasuries seeking a safe haven
## 10-year Treasury yield falls
The benchmark 10-year U.S. Treasury yield fell about 20 basis points from early-October high.
## France-Germany spread widens
The France-Germany 10-year government bond spread widened to 159 basis points in October.
## French 10-year yield rises
French 10-year government bond yield rose to 4.963%, highest since 2002.
## French sovereign credit reprice
Market pricing of French sovereign credit has undergone structural change with covered bonds yielding 30 basis points lower than government bonds.
## Japanese investors sell French bonds
Japanese investors have net sold about ¥356 billion (approximately $2.3 billion) of French government bonds this year.
## Bessent on mortgage rates
Bessent says U.S. mortgage rates should decline as energy price shock fades and borrowing costs remain above 7%.
## Fannie Mae and Freddie Mac
U.S. government considering ending conservatorship of Fannie Mae and Freddie Mac within next year or two.
## Bessent on political stability
Bessent praised France's economic team as 'first-rate' despite political deadlock and budget concerns.

> the economic team of President Emmanuel Macron is 'first-rate'
## Market reaction to France
Italian 10-year government bond yield rose 11 basis points to 4.58% as markets reassess euro-area credit risk.
## Bessent on housing legislation
Housing legislation passed by Congress restricts institutional investors' access to parts of residential market.
## Key takeaway

U.S. Treasury Secretary Scott Bessent says French bond turmoil won't spill over to U.S. markets but safe-haven capital is flowing into U.S. Treasuries.