French 10-Year Bond Yield Tops 5% for First Time Since 2002

France's 10-year bond yield exceeded 5% for the first time since 2002, amid cost-of-living protests and inflation concerns, increasing borrowing costs and pressure on the French economy. The yield reached the 5% threshold amid investor worries over the government's ability to contain budget deficits and rising public debt, with the spread over German bonds widening to 1.57 percentage points. The European Commission projects France's budget deficit at 5.1% of GDP in 2026, with public debt rising to 118.1%. The financial strain coincides with ongoing "Yellow Vest" protests against high living costs and fuel prices, which have led to over 2,400 arrests and nightly curfews in several cities. Higher bond yields also raise financing costs for households and businesses, potentially affecting the broader eurozone economy.