French government bonds have once again trailed other European sovereign debt. The yield gap between French and German 10-year government bonds briefly widened by 10 basis points to 138 basis points, as investors continued to digest the risk of heightened fiscal pressure stemming from budget negotiations in the coming months.

The widening of the France-Germany spread came after European Central Bank Governing Council member Emmanuel Moulin indicated that conditions in the French bond market are not yet severe enough to warrant ECB intervention.

French government bonds rose on Tuesday alongside the broader European government bond market, but later gave back some of those gains. On Wednesday, the yield on French 30-year government bonds climbed 7 basis points to 5.37%.

Steven Barrow of Standard Chartered said, "At this point, almost no one believes the European Central Bank will step in to buy French government bonds, or any other country's bonds, at this stage."