French 10-year bond yield tops 5% for first time since 2002

· Economy · France

France's borrowing costs climbed above 5 percent on Oct 21 for the first time in 24 years, as investors reacted to violent street unrest and the government's failure to agree a long-delayed budget. The yield on 10-year government bonds rose past 5 percent, a level last seen in 2002. France is under intense pressure to cut spending while facing protests demanding the state spend more, and the standoff has left markets questioning the country's finances and debt trajectory. The move came as global stocks rose on AI-led earnings, underscoring how France's risk premium stood out.

Why it matters：A core eurozone economy paying 24-year-high borrowing costs raises questions about euro-area debt sustainability and could force Brussels and Paris into harder fiscal choices.

Key points

  • The 10-year yield passed 5 percent, a level last seen in 2002.
  • Investors cite both weekend riots and the absence of an agreed budget.
  • The government must cut spending even as protesters demand more.

Sources (original reporting)

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