France's Prime Minister Le Corney announced his resignation on October 6, news quickly hit the financial markets, exacerbating shocks in the French stock and bond markets.

According to French media reports, the yield of French 10-year government bonds soared by more than 9 basis points on the 6th, exceeding 3.6%, approaching the high during the European debt crisis in 2011. Market participants pointed out that the rise in government bond yields means that investors are more worried about French debt risks.

The French stock markets were also hit by the shock.The French stock market CAC40 opened down by 2%.In comparison, the other major European stock indices were relatively smooth.

The French newspaper "Echo" believes that the resignation of the Prime Minister has stranded the advancement of the 2026 budget again, and the prospect of fiscal consolidation is worrying.

In September this year, international rating agency Fitch downgraded France's long-term foreign currency issuer default rating from "AA-" to "A+" on the grounds of continued political turmoil, protracted budget bills, and continued rising debt levels.