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Photograph: SDIS 87/AFP/Getty Images     (france-hit-by-debt-sell-off-as-protests-unnerve-investors.html#img-1)   View image in fullscreen       A town hall in the French city of Limoges was set on fire during the protests. Photograph: SDIS 87/AFP/Getty Images       (https://www.theguardian.com/world/france) France     France hit by debt sell-off as protests unnerve investors   Difference between French and German 10-year borrowing costs widens after violence breaks out (https://www.theguardian.com/business/live/2026/oct/19/exports-lift-china-economic-growth-french-protests-pressure-euro-bonds-latest-business-live-updates) Business live – latest updates            (https://www.theguardian.com/profile/lauren-almeida) Lauren Almeida   Mon 19 Oct 2026 03.32 EDT  Last modified on Mon 19 Oct 2026 09.25 EDT   (mailto:?subject=France hit by debt sell-off as protests unnerve investors&body=https://www.theguardian.com/world/2026/oct/19/france-hit-by-debt-sell-off-as-protests-unnerve-investors?CMP=share_btn_url) Share          (https://www.google.com/preferences/source?q=theguardian.com) Prefer the Guardian on Google          France has been hit by a fresh wave of selling in its bond and stock markets after (https://www.theguardian.com/world/2026/oct/18/french-government-crisis-talks-violent-unrest-policing-macron) violent protests  over the weekend left public buildings burned, hundreds of shops looted and thousands of arrests across the country. Almost 2,400 people have been arrested in France, the interior ministry said on Sunday, with police (https://www.theguardian.com/world/2026/oct/17/protests-france-high-prices-social-security-gilets-jaunes) deploying teargas in confrontations with protesters .  The French president, Emmanuel Macron, condemned the “unbridled violence” in a televised address on Sunday night. “Looking at these images, we all asked ourselves: what is going through their minds? How can French people do this to (https://www.theguardian.com/world/france) France ?” he said. The chaos has spooked investors in France’s government debt, with the yield on its 10-year yield rising by 10 basis points to 4.89% on Monday. Yields rise when prices fall. This widened the difference between the French and German 10-year borrowing costs – which is a metric for the risk premium attached to French debt – towards the highest levels seen in 14 years. Analysts at Goldman Sachs said European sovereign risk was back in focus, with fiscal concerns about France raising the question of whether there could be a repeat of the eurozone debt crisis of 15 years ago. “The risks of disorderly market escalation and real economy contagion look notably lower. But the fundamental fiscal challenges for some countries – especially in France – look harder now than in 2011-15,” investment bank said. “The issue of how to deal with fundamental sovereign risk remains unresolved in the (https://www.theguardian.com/business/euro) Euro area, requiring credible fiscal consolidation,” the analyst added. The two-year French bond yield rose by eight basis points to 3.63%. Concerns about France’s instability knocked the euro down to a 17-month low against the pound on Monday morning, with sterling rising to €1.188. Violence erupted across France after weeks of peaceful demonstrations over conditions in schools and the cost of living. While tens of thousands of people have attended peaceful marches to demand more teachers and repairs to decrepit schools, different groups have clashed with police in cities including Paris, Bordeaux, Nice and Marseille. Jim Reid of Deutsche Bank said the protests “won’t make it easy for the international community to be totally comfortable buying OATs [French government bonds]”. He said: “With France already facing a difficult fiscal backdrop and the 2027 election approaching, the weekend adds another layer of political risk for markets.” The 30-year bond, which is a benchmark for the French government’s long-term cost of borrowing, rose by five basis points to 5.42%. (france-hit-by-debt-sell-off-as-protests-unnerve-investors.html#EmailSignup-skip-link-16) skip past newsletter promotion     Free newsletter | Every weekday    Sign up to Business Today  Get set for the working day – we'll point you to all the business news and analysis you need every morning  ()   Enter your email  ()   Sign up      after newsletter promotion   The rise in borrowing costs will add further strain to France’s public finances, as the government also tries to pass a budget for next year (https://www.theguardian.com/world/2026/oct/10/france-caught-between-bond-markets-student-worker-blockades) to rein in its deficit . France’s debt-to-GDP stood at 115.6% in 2025, while its budget deficit was 5.1%, compared with 94.3% and 4.3% for the UK respectively. The unrest adds to “concerns about the political and fiscal troubles in France”, said Neil Wilson, Saxo UK’s investor strategist. “It underscores how hard it will be for a government to enact the kind of spending restraint required to get the deficit down.” The French government is preparing a budget that would involve cutting pensions spending and funding for government departments, excluding defence. However, there are growing fears that political pressure could derail these plans, which could push up borrowing and add more to the country’s debt pile. The euro also slipped against the US dollar, down by 0.4% in early trading on Monday, falling to $1.1197. The French Cac 40, which tracks the biggest companies listed in Paris, fell by 1.2% in morning trading, compared with a 0.7% drop on the pan-European Stoxx Europe 600 index. French bank stocks were among the fallers, with Société Générale and BNP Paribas down more than 2%.         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(Sunday, October 18, 2026 at 11:15 AM Eastern Daylight Time) 22h ago           (https://www.theguardian.com/world/2026/oct/18/french-government-crisis-talks-violent-unrest-policing-macron)    ()      Macron criticises ‘unbridled violence’ after days of unrest and 2,400 arrests across France   (Sunday, October 18, 2026 at 02:57 PM Eastern Daylight Time) 19h ago           (https://www.theguardian.com/business/2026/oct/08/medium-term-borrowing-costs-uk-government-19-year-high)    ()      Bank governor urges John Healey to use budget to allay market fears amid bond turmoil   (Thursday, October 8, 2026 at 12:38 PM Eastern Daylight Time) 8 Oct 2026           (https://www.theguardian.com/business/2026/oct/15/tech-market-sell-off-deepens-amid-fears-over-us-inflation-and-ai-debt)    ()      Tech market sell-off deepens amid fears over US inflation and AI debt   (Thursday, October 15, 2026 at 10:33 AM Eastern Daylight Time) 4d ago           (https://www.theguardian.com/business/2026/oct/01/global-bond-sell-off-uk-long-term-borrowing-costs-us-bond-yield)    ()      US borrowing costs hit 24-year high as global bond sell-off intensifies   (Thursday, October 1, 2026 at 01:56 PM Eastern Daylight Time) 1 Oct 2026           (https://www.theguardian.com/world/2026/oct/18/lisbon-milan-protests-housing-living-costs)    ()      ‘We are suffocating’: protests spread to Lisbon and Milan as housing and living cost tensions intensify   (Sunday, October 18, 2026 at 07:02 AM Eastern Daylight Time) 1d ago           (https://www.theguardian.com/business/2026/jul/29/asian-chip-firms-shares-plunge-ai-sell-off-stock-markets)    ()      FTSE 100 hits record high despite AI sell-off    (Wednesday, July 29, 2026 at 11:02 AM Eastern Daylight Time) 29 Jul 2026           (https://www.theguardian.com/business/live/2026/oct/01/uk-house-prices-september-mortgage-rates-bonds-stock-markets-manufacturing-latest-news-updates)    ()      Bond sell-off: US government borrowing costs hit highest since 2002, as UK 30-year bond yield hits 6% – as it happened   (Thursday, October 1, 2026 at 12:08 PM Eastern Daylight Time) 1 Oct 2026           (https://www.theguardian.com/world/2026/oct/17/protests-france-high-prices-social-security-gilets-jaunes)    ()      Buildings set ablaze and more than 1,800 arrested as police clash with protesters across France   (Saturday, October 17, 2026 at 08:01 PM Eastern Daylight Time) 2d ago           (https://www.theguardian.com/business/2026/jul/28/ai-sell-off-chip-stocks-sk-hynix-samsung)    ()      South Korean stock market at three-month low as AI sell-off intensifies   (Tuesday, July 28, 2026 at 01:43 PM Eastern Daylight Time) 28 Jul 2026                        Most viewed      Most viewed                                                               (https://www.theguardian.com/business) Business  (https://www.theguardian.com/business/economics) Economics  (https://www.theguardian.com/business/banking) 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