French borrowing costs continued to rise on Thursday, as investors fret that France’s government is struggling to pass a federal budget after public protests gripped the country.

France’s bond market was hit with another bout of selling, with the difference between French and German 10-year borrowing costs – a metric for the risk premium attached to French debt – rising to its highest level in almost 15 years.

The yield on the French 10-year bond – known as obligation assimilables du Trésor ( Oat ) – rose by nine basis points to 5.089% in early trading on Thursday, its highest level since July 2022.…