Paris Baguettes, Bonds and a Bit of a Crisis

Violent protests in France over the weekend sparked a sharp sell‑off in French government bonds and equities, widening the spread between French and German borrowing costs as investors fled to safer assets.

Demonstrators torched municipal halls and looted shops, and authorities detained thousands of participants.

The market reaction was swift: French bond yields rose and the spread to German Bunds widened, prompting a shift toward more secure investments.

In London, traders quipped that the only thing more volatile than the French market was the price of a baguette on the supermarket shelf.

The French government has not yet issued a formal statement, and analysts warn that the unrest could keep pressure on the economy as long as the streets remain unsettled.