Social Unrest and Fiscal Crisis Combine as French Bond Yields Surge to 24-Year High

French 10-year government bond yields rose to 5% in early trading, the highest level since 2002, with the French-German 10-year spread approaching 160 basis points, a level not seen since the Eurozone debt crisis. Moody's will assess France's Aa3 rating later this week. France's public deficit currently stands at 5.4% of GDP, and national debt reaches 119% of GDP, the highest level since 1946. Analysis by Deutsche Bank shows that France is the most vulnerable economy among the 18 Eurozone countries to sovereign debt crisis risks.