French Bond Yields Near 24-Year High Amid New Protest Warnings

Economic Times Markets · stocks

French government bond yields have climbed significantly, nearing a 24-year high, as investors grow cautious due to planned new protests. Bond prices fell after weekend riots, exacerbating the government's deficit reduction challenges. The yield on France's OATs rose, widening the gap with German Bunds. Analysts suggest that public resistance will make implementing fiscal reforms difficult, potentially benefiting right-wing and centrist political candidates. Meanwhile, euro zone benchmark yields saw a slight decrease, but energy price pressures continue to fuel expectations of further European Central Bank rate hikes.