Key facts
- French 10-year OAT yields reached 5.002% on Wednesday.
- The French-German 10-year yield spread widened to 157 basis points.
- Carrefour cut its operating profit margin growth targets due to riots.
Euro zone bond yields rose on Wednesday, with French borrowing costs leading the increase as widespread protests put pressure on the government's finances. Benchmark 10-year French OAT yields have risen more than 16 basis points this week, nearing 5% for the first time since mid-2002. The premium of French yields over German Bunds widened to 150 basis points. The violence had calmed by Tuesday, but more protests are planned. Carrefour, Europe's largest food retailer, cut its operating profit margin growth targets due to the riots. Investors are also watching Italy, where similar protests prompted Prime Minister Giorgia Meloni to approve tougher anti-rioting measures. German 10-year yields rose 3 basis points to 3.426%.