France’s benchmark 10-year bond yield reached 5% this week as Yellow Vest activists prepared an Oct. 24 Paris march, with unrest adding to concern over the country’s strained public finances.
The yield was its highest since July 2002, Reuters reported. Analysts cited by the news agency said further unrest could complicate efforts to repair France’s finances amid mounting budget pressure. Higher yields also mean higher government borrowing costs.
Reuters reported that a Yellow Vest representative presented plans for a march through central Paris. The movement, which emerged in 2018, has focused on rising living costs and declining public services. Student groups have called for demonstrations on Oct. 24 to demand more investment in education.
French President Emmanuel Macron said Oct. 21 that authorities would stop people seeking to cause disorder at the next protests. Government ministers promised a stronger security operation following violence at Oct. 17 demonstrations, with additional police and troops expected to be deployed, Reuters reported.
Clashes and looting during the earlier protests affected several cities, including Paris, Marseille, Lyon and Limoges. The government imposed local curfews in areas affected by the unrest. Reuters reported that a second consecutive night under those measures passed without major incidents.
Prime Minister Sebastien Lecornu met union leaders Oct. 21. In a letter before the talks, he said the government’s response must protect the freedom to demonstrate. CGT union leader Sophie Binet said the anger behind the protests called for a political response rather than repression.
The unrest has also drawn criticism from political opponents ahead of France’s 2027 presidential election. Far-right leader Marine Le Pen said the government had lost control, while France Unbowed criticized plans to deploy troops in Paris.
Macron plans to meet intelligence services Oct. 22 ahead of further protests. France’s main unions have separately called for nationwide mobilization on Nov. 5.
