Key facts
- French 10-year bond yield rose to 4.849%, widening the spread over German debt.
- Over 2,300 people were arrested during weekend protests across France.
- The French Cac 40 index fell 1% at the start of Monday's trading.
France's bond and stock markets experienced renewed selling pressure on Monday as investors reacted to widespread protests and violence over the weekend. The interior ministry reported nearly 2,400 arrests nationwide. President Emmanuel Macron condemned the "unbridled violence" in a televised address, questioning how French people could inflict such damage on their country. The unrest has spooked investors in French government debt, leading to a rise in yields. The 10-year yield increased by seven basis points to 4.849%, widening the spread over German debt and signaling a higher risk premium for French borrowing. The two-year yield rose 2.5 basis points to 3.571%, and the 30-year yield climbed three basis points to 5.397%. The euro also saw a slight dip against the US dollar, falling to $1.122. The French Cac 40 index dropped 1% at the start of trading, underperforming the broader Stoxx Europe 600 index. Analysts noted that the protests add another layer of political risk for France, which already faces fiscal challenges and an upcoming election.