France's political and budget crisis is rattling European markets, but bond investors cheered Le Pen's plan to slash the deficit — a relief for lenders, a threat to anyone relying on French public spending.

• French government bond yields jumped, then fell back after Le Pen proposed much deeper deficit cuts than Macron's government is planning.
• Her plan would shrink the deficit well below the official target next year and roughly halve it by the early 2030s.
• The savings would come from spending cuts, smaller payments to the EU, and less money for migrants.
• Riots are already breaking out over school budget cuts, a sign austerity will be ugly on the ground.
• A weakening France drags on the whole EU, and trouble there tends to reach US markets within weeks or months.

Outlook: Le Pen's odds of winning look stronger as the budget fight drags on, and French bonds will likely keep swinging with every twist in the political crisis.