France’s borrowing costs have surged amid the worst social unrest in the country in decades. Yields on French bonds have risen to their highest levels in nearly a quarter of a century as investors demand higher returns for taking on government debt. The surge reflects a growing conviction in bond markets that lending to France is becoming an increasingly risky proposition. While France is grappling with a widening gap between government spending and revenues, the country’s fragmented political landscape is bitterly divided on how to plug the hole.
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