French unrest pushes 10-year bond yields to highest since 2002
Why it matters: planned protests and a budget fight are deepening worries over France’s deficit, growth and borrowing costs.
Investor anxiety over France’s unrest spread from stocks to sovereign debt, with the yield on the country’s 10-year bonds rising to its highest level since 2002 and the gap over German Bunds widening to the most since 2011. European shares were steadier, helped by strong earnings, but French assets remained under pressure as protests and riots added to concerns about weak public finances and slowing growth. Moody’s kept France at Aa3 with a negative outlook, citing risks from political fragmentation. The National Assembly is due to resume debate on budget tax measures on Oct. 27, while further demonstrations are planned for Oct. 24 and a national strike day is set for Nov. 5.