French bonds fall amid unrest
French sovereign bonds declined as a result of fierce unrest that has gripped the country in recent days. France has experienced a wave of protests against rising living costs, coupled with increasing debt and a fiscal deficit considered among the largest in the Eurozone. This led to the spread between 10-year French bonds and their German counterparts widening to 146 basis points, the highest in two weeks, while the gap with Italian bonds also reached a record level. Concurrently, the euro declined, and the CAC 40 index fell by 1.2%. France faces a social and economic crisis amid rising political tensions, as parliament discusses a budget proposal for the upcoming year that includes measures to cut the deficit by €43 billion. Expectations are that reaching an agreement will be challenging due to political divisions and social tensions ahead of the presidential elections.
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