French bonds fell after Moody’s Ratings cut the country’s credit rating, putting more pressure on officials after far-right leader Marine Le Pen toppled the previous prime minister over a budget dispute.

The spread between French and German benchmark bond yields widened, signaling investor unease about France's public finances. France has endured a monthslong political crisis, driving up the premium investors demand for holding French bonds.

The yield on 10-year French debt rose to more than 3%, on the first trading day after the credit rating agency unexpectedly cut France's debt rating. View on euronews

Within hours of being appointed, France's new prime minister Francois Bayrou faced his first ordeal: the country's credit rating was downgraded by credit rating agency Moody's.

French stocks were sliding on Monday after Moody's downgraded the country's debt. The ratings agency slashed its score to Aa3 from Aa2, meaning it thinks there’s a slightly higher probability that the

Credit ratings agency Moody's has unexpectedly downgraded France's rating, adding pressure on the country's new prime minister to corral divided lawmakers into backing his efforts to rein in the strained public finances.