French borrowing costs hit 24-year high as civil unrest and budget fears spook markets

Yield on 10-year government bonds passes 5% amid failure to pass budget and fallout from violent street protests

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France’s borrowing costs have climbed above 5% for the first time in 24 years as political concerns and the government’s failure to agree a much-delayed budget spook the financial markets.

With some civic buildings still smouldering from recent riots, a fresh bout of selling pushed up the yield – or interest rate – on bonds issued by the second largest economy in the eurozone.