French 10-year bond yields hit 5%, highest since 2002, amid budget impasse and unrest

Briefing by News4U · First published 2026-10-21 22:06:17 UTC

Yields on French government bonds rose above 5% for the first time since 2002 as political gridlock and protests over budget and living costs spooked investors.

The yield on France’s benchmark 10-year bond rose more than 8 basis points to 5% before easing to 4.99%, its highest level since July 2002, as investors demanded higher returns amid concerns over public finances and political stability. [1] [2] [3] [4] [5] [6]

The French government has yet to pass its 2027 budget, with the deficit at 5.1% of GDP and debt at 115.6% of GDP in 2025. Protests that began over school conditions escalated into riots, with looting and arson reported in several cities. [4]

Sources

1. French Bond Yields Hit Multiyear Highs, U.S. Treasury Yields Edge Higher

   WSJ Markets · 2026-10-21 06:28:00 UTC · Summary only

2. France’s borrowing costs hit 5% for first time since 2002

   FT Europe · 2026-10-21 08:17:23 UTC · Summary only

3. French Yields Hit 5%, Highest Since 2002, as Risk Gauge Climbs

   Bloomberg · 2026-10-21 09:18:02 UTC · Summary only

4. French borrowing costs hit 24-year high as civil unrest and budget fears spook markets

   The Guardian Business · 2026-10-21 13:17:32 UTC · Full text

5. French Bond Risk Hits 15-Year High as Risk Gauge Climbs

   Bloomberg · 2026-10-21 15:15:18 UTC · Summary only

6. French bond yields hit 24-year high after unrest

   France 24 Business · 2026-10-21 20:43:53 UTC · Excerpt

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