France's borrowing costs exceed US as 10-year yield hits 5.089%
For the first time in more than a decade, it's now more expensive for France to borrow money than it is for the US
Investors are uneasy after France's 10-year bond yield jumped to 5.089%, thanks to ongoing budget drama and protests, including marches demanding more teachers and repairs to decrepit schools, while Macron's plans to raise the state pension age from 62 to 64 remain blocked.
France's 5.1% deficit and violent protests
France is running a big budget deficit (5.1% of GDP in 2025), with higher inflation triggered by the war in Iran.
Protests have turned violent, leading to thousands of arrests and making it even harder for the government to get its budget approved or move forward with reforms.
The political gridlock isn't helping, and until things settle down, the European Central Bank is likely holding off on any big moves, too.