France hit by debt sell-off as protests unnerve investors

Protests erupted across France in late October 2026, initially sparked by student activists protesting poor school conditions such as overcrowded classrooms and teacher shortages. The demonstrations quickly escalated into widespread unrest involving tens of thousands of people, including trade unionists and remnants of the Yellow Vest movement, who joined forces to protest against high prices and social inequalities. By October 17, over 600 protests were planned nationwide, with nearly 200,000 participants expected, particularly in Paris where around 40,000 protesters gathered despite police restrictions.

The unrest led to violent confrontations between protesters and the police, who used non-lethal weapons like tear gas and water cannons. As a result, hundreds of people were injured, and over 2,400 arrests were made, mostly involving teenagers under 18 years old. The protests also caused significant damage, with public buildings burned and hundreds of shops looted.

President Emmanuel Macron condemned the "unbridled violence" but refused to accept Interior Minister Laurent Nuñez's resignation offer, citing "failures in anticipation and intelligence." Despite this, Nuñez admitted that police had lost control during some protests. The unrest has also affected France’s economy, leading to a sell-off of its bonds and stocks, with the 10-year yield rising by seven basis points to 4.849%.