French government bond yields hit 4.9937% highest since July 2002
French government bond yields reached 4.9937%, their highest since July 2002, in early October, while on Tuesday they were up 3 bps at 4.96%, thanks to a mix of weekend riots and more protests on the way.
Investors are getting nervous, and the gap between French and German bond yields widened to 152.50 basis points on Tuesday; it had earlier reached 158.67 basis points in early October, its highest level since November 2011.
France faces political uncertainty over reforms
France is facing big political uncertainty as leaders try to push through tough economic reforms.
With a key budget vote coming up and energy prices staying high, investors are worried things could get even shakier, especially if the European Central Bank raises rates again.
All eyes are on how France handles these challenges amid growing public unrest.