France hit by debt sell-off as protests unnerve investors

AI desk brief

France’s weekend protests triggered a fresh sell-off in OATs, with the 10-year yield up 7bp to 4.849% and the 30-year up 3bp to 5.397%, widening the French-German spread as investors reassessed political risk and fiscal slippage. The euro also slipped 0.4% to $1.1197, a modestly supportive backdrop for precious metals through the FX channel, though the immediate market impulse is more about European sovereign risk than a direct metals catalyst.

The move comes as France tries to pass a budget to rein in a 5.1% deficit amid rising social unrest and ahead of the 2027 election, raising the chance of further volatility in euro assets if fiscal consolidation falters.