French borrowing costs hit 24-year high as civil unrest and budget fears spook markets
Source: The Guardian ·
Yield on 10-year government bonds passes 5% amid failure to pass budget and fallout from violent street protestsBusiness live – latest updatesFrance’s borrowing costs have climbed above 5% for the first time in 24 years as political concerns and the government’s failure to agree a much-delayed budget spook the financial markets.With some civic buildings still smouldering from recent riots,a…
From the source
France’s borrowing costs have climbed above 5% for the first time in 24 years as political concerns and the government’s failure to agree a much-delayed budget spook the financial markets. With some civic buildings still smouldering from recent riots,a fresh bout of selling pushed up the yield – or interest rate - on bonds issued by the second-largest economy in the eurozone. The yield on the benchmark 10-year bond – known as obligation assimilables du Trésor (Oat), issued by the French Treasury – rose more than 8 basis points to 5% in morning trading, before easing to 4.99%. The French government has yet to pass its budget for next year, while the country has been rocked by increasingly violent street protests in recent weeks. Protests that began in September with students calling for extra funds to deal with mould and rat-infested schools, a lack of teachers and large class sizes, evolved into wider demonstrations about the rising cost of living. Initially calm protests have often…
BestAIBroker analysis
- Finance-aware sentiment: negative (-0.60 on a -1 to +1 scale).
- Event classification: OTHER.
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