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The French bond market experienced historic turmoil this week. A much-publicized risk indicator is nearing its biggest rise on record, as political instability may further fuel market concerns about the country's public finances. The data shows that so far this week, the risk premium required for investors to hold French 10-year treasury bonds rather than German treasury bonds for the same period has risen 33 basis points, the biggest increase since records began in 1990. The yield on French 10-year treasury bonds stabilized at around 5% on Friday, while the CAC 40 index fell. Investors worry that France is facing dangerous prospects in a context of heavy debt burdens, weak economic growth, and public discontent turning into chaotic street demonstrations. Market concerns about another outbreak of protests this weekend also made business executives wary until the weekend. More broadly, risk assets around the world were sold off as oil prices rose above $100 per barrel, and the market was uneasy about AI's profitability.
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The French bond market experienced historic turmoil this week. A much-publicized risk indicator is nearing its biggest rise on record, as political instability may further fuel market concerns about the country's public finances. The data shows that so far this week, the risk premium required for investors to hold French 10-year treasury bonds rather than German treasury bonds for the same period has risen 33 basis points, the biggest increase since records began in 1990. The yield on French 10-year treasury bonds stabilized at around 5% on Friday, while the CAC 40 index fell. Investors worry that France is facing dangerous prospects in a context of heavy debt burdens, weak economic growth, and public discontent turning into chaotic street demonstrations. Market concerns about another outbreak of protests this weekend also made business executives wary until the weekend. More broadly, risk assets around the world were sold off as oil prices rose above $100 per barrel, and the market was uneasy about AI's profitability.
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