French borrowing costs hit 24-year high as civil unrest and budget fears spook markets

Initially calm protests have often been met with aggressive police tactics, sparking riots in many towns and cities in France. Photograph: Michel Euler/AP

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.