French markets tumble as riots add to political crisis
TLT•French markets fell on Monday as protests intensified concerns about the government's ability to reduce the deficit. The 10-year French yield rose 13 basis points to 4.9%, French stocks dropped 1.5%, and the euro weakened.
1. Yields rise as protests weigh
French bond prices fell on Monday, pushing the 10-year yield up 13 basis points to 4.9%, its largest one-day rise since late September. The gap between French and German 10-year yields widened to 146 basis points, its highest in two weeks.
2. Stocks and euro fall
The CAC 40 fell 1.5%, while shares in BNP Paribas and Societe Generale each dropped 3%. France's five-year credit default swap rose 5 basis points to around 82, and the euro fell 0.2% to 0.3% against the dollar, pound and yen. Investors are awaiting a budget bill to rein in France's finances, while Moody's is due to review the country's credit rating on Friday.
