French Bond Yields Surge Amid Political and Social Unrest

Global bond markets are experiencing significant volatility, with The French Republic seeing its 10-year bond yields rise by 131 basis points over the past year. This increase is the highest among 22 tracked markets, surpassing yields in Italy and Greece. The selloff is driven by political opposition to government debt control efforts and widespread protests over school funding.

In the United States, the bond market turmoil has pushed average mortgage rates to approximately 7.3%, resulting in a 37% year-over-year collapse in mortgage applications. While the S&P 500 remains positive year-to-date, growth is heavily concentrated in technology and communication services, which masks declines in other sectors.

Markets saw a brief stabilization in the last 24 hours as oil prices fell below $100 per barrel and the 10-year U.S. Treasury yield dipped to 5.27%. Despite this pause, some analysts argue that a bond-market crisis is necessary to force structural change.