French bond and stock markets were affected by a new wave of selling on Monday, 19 October 2026, after violent protests across the country over the weekend. These events led to public buildings being burned, hundreds of shops looted, and thousands of arrests.
The interior ministry reported on Sunday that almost 2,400 people had been arrested, with police using teargas during confrontations with protesters. French President Emmanuel Macron condemned the "unbridled violence" in a televised address on Sunday night.
The unrest has reportedly unsettled investors in French government debt. The yield on France's 10-year government debt increased by seven basis points to 4.849%, while the two-year yield rose by 2.5 basis points to 3.571%. This widening of the difference between French and German 10-year borrowing costs is a metric for the risk premium associated with French debt.
The 30-year bond, a benchmark for long-term borrowing costs, also rose by three basis points to 5.397%. Jim Reid of Deutsche Bank suggested the protests would make it difficult for the international community to be comfortable buying French government bonds, citing France's existing fiscal challenges and the upcoming 2027 election as adding political risk.
The euro also saw a slight dip against the US dollar, falling by 0.13% to $1.122 in early Monday trading. In the stock market, the French Cac 40 index, which tracks major companies listed in Paris, dropped by 1% at the start of trading, compared to a 0.4% fall on the pan-European Stoxx Europe 600 index.