19.10.202609:31:34UTC+00European Bond Yields Rise

European government bond yields rose on Monday, with borrowing costs in highly indebted euro-area countries climbing as unrest in France intensified concerns over its fiscal outlook. Germany’s 10‑year Bund yield ticked up to 3.43%, while French and Italian 10‑year yields advanced to 4.87% and 4.55%, respectively.

Protests in several French cities degenerated into violent clashes, resulting in some of the most serious street unrest the country has seen in years. Demonstrations also spread to Belgium, Italy and Portugal. The turmoil is adding pressure on President Emmanuel Macron’s government in the run-up to the 2027 presidential election, as public anger over living costs and education compounds anxieties about fiscal policy and political stability.

Geopolitical uncertainty was further heightened by escalating tensions between Ukraine and the United States, after Ukrainian President Volodymyr Zelenskyy accused US President Donald Trump of pressuring Kyiv to make concessions to Russia.

On the monetary policy front, the European Central Bank is widely expected to leave interest rates unchanged at its meeting next week.