FX.co ★ French Borrowing Costs Rise as Unrest Deepens

France’s 10-year OAT yield rose toward 4.85%, nearing its highest level in more than two decades, as escalating social unrest and persistent political deadlock deepened pressure on the country’s already fragile bond market. Nationwide demonstrations over surging living costs and worsening conditions in schools swept across France over the weekend, with incidents of violence and looting reported in several cities. The turmoil compounds the government’s mounting challenges as it struggles to push through a budget and contain public debt ahead of next year’s presidential election. Prolonged political uncertainty risks keeping borrowing costs elevated, further complicating efforts to restore confidence in France’s public finances. French government bonds have been among the hardest hit in a broader global bond selloff, driven by renewed inflation concerns, expectations of higher interest rates, and rising anxiety over sovereign debt sustainability.