Social unrest, political instability and mounting national debt weighed on French assets on Monday, with government bonds and Paris-listed stocks under pressure.
The euro was last seen down 0.28% against the U.S. dollar, and was 0.24% lower against the British pound.
The French 10-year bond yield jumped more than 10 basis points, remaining near its highest level in decades despite some recent easing. Higher yields represent higher borrowing costs for the government in the debt market. The country's 2-year and 30-year yields were up 6 basis points and 8 basis points, respectively.
Stocks are also feeling the heat, with the CAC 40 index down 1.34% in morning deals on Monday. The market has significantly underperformed its European peers in recent years as political volatility has mounted — despite only around 15% of its revenues being generated domestically — with banks under particular pressure.
The French stock market is historically sensitive to any widening in the so-called "OAT-Bund spread", the extra bond yield France pays over Germany, which has hit the highest level since the European Sovereign Debt Crisis of the early 2010s. French yields now also surpass those of Italy or Greece, implying higher risk.