Eurozone bond yields climb as French unrest sparks fiscal fears
In short
Eurozone bond yields rose as protests in France fed worries about public finances. French 10-year yields hit 4.948%, and the gap over German bonds widened to 150 basis points.
Higher oil prices above $110 a barrel also added to inflation fears. The report does not say how long the unrest will last or what policy response may follow.
What the reporting says
Eurozone government bond yields rose as protests in France raised concerns over fiscal stability and public finances, with French 10-year yields reaching 4.948% and the spread over German bonds widening to 150 basis points. The report also says oil prices above $110 a barrel added to inflation worries. The immediate consequence is tighter pressure on French borrowing costs and wider Eurozone market stress.
Why it matters
Eurozone government bond yields rose after protests in France increased concern about fiscal stability and public finances. French 10-year yields climbed to 4.948%, near a 23-year high, while the spread over German bonds widened to 150 basis points. Oil above $110 a barrel added inflation pressure. The report does not say whether authorities will act or how long the unrest will continue.