Bloomberg columnist Gearoid Reidy analyzed in his October 9 article that as Japan embarks on the path of policy normalization, global bond markets are feeling the impact, with French government bonds potentially being the first casualty. The 10-year French government bond yield briefly approached 5%, its highest since 2002, with borrowing costs now exceeding those of Greece and Italy. Meanwhile, US Treasury yields also climbed to a multi-decade high of 5.28%. Reidy pointed out that Japanese investors have reduced their holdings of both French and US government bonds, indicating that Japanese capital is "coming home" to rebuild its domestic fixed income culture. Analysts are divided on the specific mechanism through which Japan influences US Treasuries, but the consensus is that the root cause points to the Japanese bond market. Furthermore, France's own fiscal woes (debt close to 120% of GDP, and deficits exceeding 5% for three consecutive years) are also fundamental reasons for the pressure on French government bonds.