French Bond Yields Hit 24-Year High as Protests and Deficit Concerns Mount

French government bond yields rose to near 24-year highs on Tuesday, reaching 4.96 percent, as investors reacted to widespread protests, fiscal deficit concerns, and eurozone market trends. The yield gap between French OATs and German Bunds widened to 152.50 basis points, while protests and political uncertainty from far-right and far-left candidates complicate deficit reduction efforts. Italian spreads also rose. Euro zone benchmark Bund yields edged lower to 3.43 percent, though persistent energy price pressures kept expectations for further European Central Bank rate hikes intact. Analysts noted winter weather will be crucial for gas prices.