- The 10-year OAT yield briefly crossed 5% on Wednesday, Oct 21, 2026, for the first time since 2002.
- Lawmakers are negotiating the 2027 budget, with PM Sebastien Lecornu targeting 54 billion euros in spending cuts.
- France is under the EU excessive deficit procedure, with the deficit at 5.1% of GDP at the end of last year versus the bloc's 3% recommendation.
- Finance Minister Roland Lescure said the government is willing to bypass parliament again, including via Article 49.3, to pass the budget.
- Widespread protests that began as a Parisian student movement turned violent, with rioting and looting over the weekend and damages estimated in the hundreds of millions of euros.
- Bond traders are also watching next spring's French presidential election as a potential source of further instability.
Quotes
“We have the tools to get it passed, so I'm convinced we'll succeed.”
“If we veer off course, we'll activate the guardrails”