French unrest pushes bond yields to 24-year high as investors weigh risks

· Finance · France

France's second weekend of mass demonstrations drew hundreds of thousands of protesters, with clashes erupting in Paris and police firing tear gas and water cannons; the government deployed 70,000 officers. The unrest, which includes the return of the Yellow Vests movement, has rattled markets: French bond yields hit a 24-year high, and investors are weighing budget, growth and sector risks ahead of further protests. A separate shift is visible in credit markets, where some French corporate bonds now yield less than government debt — a convergence that reflects strain on sovereign risk rather than corporate strength. Storefronts and landmarks in Paris have been boarded up.

Why it matters：France is a core eurozone sovereign and corporate issuer; sustained unrest and rising yields could raise borrowing costs across the bloc and test budget credibility.

Key points

  • Police deployed 70,000 officers after the previous weekend's riots.
  • French bond yields reached a 24-year high.
  • Some French corporate bonds now yield less than government debt.

Sources (original reporting)

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