French borrowing costs hit 24-year high as civil unrest and budget fears spook markets
France's borrowing costs rose to a 24-year high, with 10-year bond yields passing 5% amid political deadlock over the national budget and widespread violent protests. The unrest stems from initial student grievances over school conditions that escalated into broader cost-of-living demonstrations.
Why it matters
Spiking sovereign debt yields in Europe's second-largest economy signal mounting financial market panic and political vulnerability for the Macron administration.
Initially calm protests have often been met with aggressive police tactics, sparking riots in many towns and cities in France. Initially calm protests have often been met with aggressive police tactics, sparking riots in many towns and cities in France. Bonds French borrowing costs hit 24-year high as civil unrest and budget fears spook markets Yield on 10-year government bonds passes 5% amid failure to pass budget and fallout from violent street protests
Prefer the Guardian on Google France’s borrowing costs have climbed above 5% for the first time in 24 years as political concerns and the government’s failure to agree a much-delayed budget spook the financial markets.
With some civic buildings still smouldering from recent riots,a fresh bout of selling pushed up the yield – or interest rate - on bonds issued by the second-largest economy in the eurozone.
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