The unrest in France intensifies fiscal concerns, and government bond yields rise

French government bond yields rose on Monday, widening the yield spread with German government bonds. France is facing weak economic growth and pressure from rising debt, with serious riots erupting over the weekend. The yield on France's 2-year government bonds briefly rose by 10 basis points, while the yield on 10-year government bonds climbed to 4.99% at the beginning of October. Deutsche Bank stated that the riots have increased the political risk in the market.