The riots are also having a devastating impact on French bond yields

On Wednesday, the yield on French ten-year government bonds surpassed 5%, a level not seen since 2002, indicating increased investor risk perception. This comes amid widespread social unrest and violent protests across France, coinciding with the government's efforts to pass a new budget featuring €54 billion in spending cuts. Political tensions are high, with various factions blaming each other for the unrest, while financial markets pressure France to address its budgetary issues. The budget deficit has remained above 5% of GDP since 2020, with public debt exceeding 115% of GDP last year.