June 28 Reuters The recent turmoil in France39;s bond market could mark a new chapter for the euro zone39;s wealthiest economies, with emerging political and fiscal risks fuelling volatility earlier associated with its highdebt members such as Greece or Spain.

French President Emmanuel Macron39;s rattled markets with his shock decision on June 9 to call a snap election after his grouping got trounced by farright parties in European parliamentary elections.

French government bond yields are around 3.25, near their highest level of the year. That has pushed their premium over German yields the European benchmark to the most since at least 2017, reflecting the extra return investors want for holding that debt.

France is also now subject to European Union disciplinary measures over its budget deficit, together with Belgium, fellow member of what has been considered euro area39;s low risk core, while former budget laggards Spain, Portugal and Greece are in the clear.

The terms core and periphery became commonplace during the euro zone sovereign debt crisis, which has driven a wedge between the richer north and the more indebted southern peripheral countries, both politically and from an investment perspective.

The periphery bonds were often the object of intense speculative trading at the first hint of any sort of setback.

However, the last few years have seen yield spreads for the euro zone39;s richeconomy core widen, while those for the periphery countries have…