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French borrowing costs hit 24-year high after unrest
French government bond yields reached their highest level in 24 years as protests shook the country. Moody's kept France's credit rating at Aa3, giving some relief. Investors are weighing budget, growth and political risks ahead of more protests.
Why it matters
Higher borrowing costs make France's debt more expensive and could spread stress to other euro area countries.
Background
France has high public debt and has struggled to pass budgets. A credit rating measures how likely a borrower is to repay.
The story so far
- French bonds, stocks and euro fall as unrest compounds debt fears
- French bond yield hits 5% and Carrefour shares fall on unrest
- French 10-year bond yield reaches new 24-year high
- French borrowing costs rise as debt and political risks mount
- French borrowing costs hit 24-year high after unrest
Sources
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