French risk premium rises as PM resigns; politics shake long bonds

French bond yields rose on Monday after Prime Minister Sébastien Lecornu unexpectedly resigned, pushing the premium of OATs over safe-haven German Bunds to its highest since January, as a political crisis in Europe's second-biggest economy deepened. Markets are watching closely to see whether the next step in France will be a snap election, with the far-right Rassemblement National likely to play a leading role in the next government. Meanwhile, ultra-long bonds came under pressure earlier in the day, following a surge in Japan's 30-year borrowing costs to a record high amid expectations of expansionary economic policies. Yields later retreated from those session highs. Germany's 10-year Bund yields, the bloc's benchmark, rose 1.3 basis points (bps) to 2.72 percent. Germany's 2-year...