France's 10-year bond yield has surpassed the 5% mark for the first time since 2002

France's 10-year government bond yield exceeded 5% for the first time since 2002, driven by investor concerns over budget cuts and protests. The rising yields reflect tensions over a proposed budget aimed at reducing high national debt, currently at 120% of GDP. This situation could lead to increased borrowing costs for businesses and households. The yield spread between French and German bonds widened significantly, indicating heightened risk perceptions. Prime Minister Sébastien Lecornu faces challenges in passing the budget amid a lack of parliamentary majority, while protests have escalated into significant violence, demanding more public spending.