French 10-year bond yield tops 5% for first time since 2002

France's benchmark 10-year government bond yield briefly surpassed 5% on Wednesday, the first time since 2002, amid violent protests and a government struggle to pass a budget. The yield later settled around 4.9794%, up 6 basis points. The spike follows a weekend of mass civil unrest and rioting driven by broad public dissatisfaction. Simultaneously, the French government faces a divided parliament while trying to pass a federal budget, with market pressure mounting for fiscal consolidation due to a swelling national debt and wide deficit. The yield crossed the 5% mark shortly before 11:30 a.m. in Paris, marking a significant milestone for the eurozone's second-largest economy. This development underscores heightened investor anxiety over France's political instability and fiscal challenges.