French 10-year yield climbs to highest level since 2002

Yields rise almost 10 basis points as political unrest over pension and budget protests continues

France's 10-year bond yield rises almost 10 basis points today, reaching its highest level since 2002.

Higher yields raise borrowing costs for mortgages and loans across the economy, and the government is under pressure from bond investors to cut public spending.

Mélenchon has proposed higher taxes on wealth and corporations, more public spending, and asking the European Central Bank to cancel or freeze the French debt it holds rather than cut the budget.

French yield spikes to 2002-era levels have recurred for a month without spreading into US Treasurys or broader risk sentiment, something senior euro zone officials described as contained on October 7. The new element is political: the generational split in support, with younger voters moving toward the candidate whose debt plan bond markets are least likely to trust, suggests the unrest is reshaping the electorate in ways not yet reflected in prices. That raises the chance of a future standoff between a Mélenchon-aligned government and creditors, a scenario still separate from the current, contained stress in French assets.