Yield on 10-year government bonds passes 5% amid failure to pass budget and fallout from violent street protests

France’s borrowing costs have climbed above 5% for the first time in 24 years as political concerns and the government’s failure to agree a much-delayed budget spook the financial markets.

With some civic buildings still smouldering from recent riots, a fresh bout of selling pushed up the yield – or interest rate – on bonds issued by the second largest economy in the eurozone.

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© Photograph: Michel Euler/AP

© Photograph: Michel Euler/AP

© Photograph: Michel Euler/AP

The turmoil shows the profound challenges facing governments stuck between unhappy citizens and wary bond investors.

© Abdul Saboor/Reuters

Difference between French and German borrowing costs widens after public buildings burned and shops looted

France has been hit by a fresh wave of selling in its bond and stock markets after violent protests over the weekend led to thousands of arrests and left public buildings burned and hundreds of shops looted across the country.

The chaos has spooked investors as analysts worried that it would undermine Paris’s efforts to cut spending and reduce its debt.

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© Photograph: SDIS 87/AFP/Getty Images

© Photograph: SDIS 87/AFP/Getty Images

© Photograph: SDIS 87/AFP/Getty Images

TOKYO — An unwelcome blast of US inflation is blowing across Asia’s markets. September’s hotter-than-expected price data revived concerns that the Federal Reserve will keep rates higher for longer, threatening fresh pressure on currencies, capital flows and economic growth across the region.

Last month’s 3.7% year-on-year increase in consumer prices didn’t just exceed forecasts. It ensured the Fed is on an even bigger collision course with both the bond market and US President Donald Trump’s White House. It’s arguably the last thing both Trump and US Federal Reserve Chairman Kevin Warsh wanted to see less than three weeks ahead of the mid-term elections.

The post Hot US inflation singes Asia as higher-for-longer Fed rates loom appeared first on Asia Times.

Mark Levine highlights city's $285M of investments in Israeli companies to stress he's not engaged in Israel boycott

Mark Levine, who is Jewish, says decision is not political but due to 'technical challenges' and 'financial considerations'

Rising bond yields have been a warning sign for financial markets in recent months amid the Iran war's risk to global economies, and the IMF says those risks are more of a concern.

Rising bond yields have been a warning sign for financial markets in recent months amid the Iran war's risk to global economies, and the IMF says those risks are more of a concern.

TOKYO — The bond vigilantes are back — and now they’re patrolling every major debt market at once. As deficits balloon, spending runs unchecked and oil prices spike, investors are reasserting control over markets that once seemed shielded from shocks and sending yields skyrocketing. The revolt spans the US, Japan, Europe and beyond as a […]

The post Bond vigilantes on a savage hunt as global yields run wild appeared first on Asia Times.

Consumers could be facing higher borrowing costs for longer as bond markets are once again signalling rising economic risk to the finance and investing community.

Consumers could be facing higher borrowing costs for longer as bond markets are once again signalling rising economic risk to the finance and investing community.