France's 10-year bond yield exceeds 4.9 percent for the first time since 2002

The rise in yield comes in conjunction with the continued "Yellow Vests" movement protests across France against the high cost of living and rising fuel prices.

On Saturday, French cities witnessed protests during which more than 2,400 people were arrested, while more than 600 police officers, gendarmes, and firefighters were injured.

On Monday and Tuesday, authorities announced the imposition of a night curfew in specific areas of the cities of Paris, Lyon, Lille, Nice, Douai, Wattignies, and Marseille.

The rise in this yield affects the general budget, as it slows growth and increases financing costs, in addition to the possibility of the crisis spreading to Eurozone countries.

This rate is considered a key factor in determining interest rates on mortgage loans, car loans, and credit card debt.

Demonstrations in French cities witnessed an escalation in tension between police and protesters, alongside acts of violence and looting of many shops, including branches of luxury brands, and the historic town hall building in the city of Limoges was set on fire.

"Yellow Vests" demonstrations in France began for the first time on November 17, 2018, in protest against fuel price increases and poor economic conditions, then turned into protests against the social and economic policies of President Emmanuel Macron.

The rise in bond yields comes as European countries are affected by damaged supply chains, and investors are anticipating the outcomes of the ongoing Russian-Ukrainian war since February 2022, and the repercussions of the American war on Iran since last February, amid stalled negotiations due to disputes over freedom of navigation in the Strait of Hormuz.