France's long-term borrowing cost jumped to its highest level since 2011 on Tuesday, September 2, as investors fret over a confidence vote next week that could topple the minority government. The yield on 30-year government bonds topped 4.5% ahead of Monday's vote, which was called by Prime Minister François Bayrou to settle a budget fight, but which he is tipped to lose.

Up from 4.45% at the close of trading on Monday, it was the highest level since November 2011, a level that was reached amid the debt crisis that rocked the eurozone at the time. The yield on 10-year French sovereign bonds has also been climbing, reaching 3.58% on Tuesday and nearing the same level as Italy, long seen as a budget laggard in Europe.

Bayrou launched a series of meetings with political parties in what appears to be a losing effort to win support for his austerity budget, aimed at slashing France's mounting debt pile. The prime minister wants to save about €44 billion ($51 billion), but his plan – which includes reducing the number of holidays and placing a freeze on spending increases – has proven unpopular.