Deutsche Bank CEO Warns on France's Debt as Bond Yields Top 5%

Deutsche Bank CEO Christian Sewing flagged France's public finances as "concerning" after the yield on 10-year French government bonds climbed above 5% on Wednesday for the first time since 2002, the highest in 24 years. The spread between French and German borrowing costs widened to its biggest gap in 15 years. Sewing stopped short of calling it a debt crisis but called the situation a "wake-up call," urging a "disciplined budget" to curb the deficit. "The bond market is not lying," he said, adding volatility would persist through France's elections in May. More than half a million people protested nationwide over school funding and living costs, with over 2,300 arrested. Carrefour shares fell more than 14% after cutting profit targets, citing roughly €10 million in protest-related damage. The euro weakened over 1% against the pound in a week. Goldman Sachs economist Alexandre Stott said further disruptions risk an economy already strained by tighter financial conditions and fiscal contraction.