FX.co ★ France 10-Year Yields Hit Near Two-Week High

The yield on France’s 10-year OAT has risen to 3.4%, approaching a two-week high, as investors analyze the recent October PMI figures while anticipating upcoming US inflation data for insights into the Federal Reserve’s future policy decisions. The French private sector experienced its 14th consecutive month of contraction, affected by weakness in both the services and manufacturing sectors amid ongoing political uncertainty. In contrast, business activity in the Eurozone expanded at its fastest rate since May 2024, exceeding expectations. Further attention is directed towards Moody’s credit rating review scheduled for October 24, with speculation that the outlook might be adjusted from stable to negative following S&P’s recent downgrade. France's budget for 2026 is still under scrutiny, with socialist factions warning they could bring down the government if their budget proposals are not met, and are planning to submit a no-confidence motion early next week unless there is an initiative to increase taxes on billionaires.