FX.co ★ France OATs Yields Near 1-Month High

France's 10-year OAT yield is currently around 3.44%, approaching a four-week high. This movement is primarily due to concerns over stalled discussions regarding the 2026 budget, coupled with broader fiscal uncertainties influencing investor sentiment. The ongoing parliamentary deadlock has left key legislative bills unaddressed, leading to speculation that the government might have to implement the budget through a rare executive order. Despite this, the Finance Ministry remains confident that the budget will be approved by the end of the year, while adhering to its objective of reducing the public deficit to 4.7% of GDP. Meanwhile, the European Central Bank has indicated it is unlikely to resume bond purchases in the near future, continuing its quantitative normalization program and reinforcing the expectation of relatively tight monetary policy. In the United States, anticipation for a potential Federal Reserve rate cut in December has increased. This is in response to Challenger data revealing that layoffs have reached their highest level for October in two decades, which somewhat dampens the optimism generated by Wednesday’s stronger-than-expected ADP employment figures and ISM services report.