The yield spread between French and German government bonds reaches a new high since 2011; the euro falls to a 10-week low against the pound.

As the yield gap between French and German government bonds widens further, the euro has fallen to a 10-week low against the pound. The pound is also boosted by UK Prime Minister Andy Burnham's pledge to reshape relations with the EU at the November summit. Earlier this week, an unexpected upward revision to the UK’s second-quarter economic growth strengthened expectations for a Bank of England rate hike, further supporting the pound. The euro briefly fell to 0.8501 against the pound. According to LSEG data, the 10-year yield gap between French and German government bonds has risen to 152.34 basis points, the highest level since November 2011.