French Bond Yields Hit 24-Year High Amid Political Unrest and Fiscal Concerns
French President Emmanuel Macron has condemned comments from foreign leaders, including Donald Trump, regarding recent mass protests and civil unrest in France. The political tension is being exacerbated by domestic calls for further rallies from groups like the 'Yellow Vests' and student unions, alongside accusations of foreign disinformation influencing the narrative. The social instability is coinciding with a significant fiscal crisis. French 10-year government bond yields have surged to 5.113%, surpassing U.S. Treasury yields for the first time since 2013. Investors are growing skeptical regarding France's ability to implement fiscal consolidation due to a lack of parliamentary majority, raising concerns about rising debt servicing costs and potential European Central Bank intervention.