FX.co ★ French 10-Year Yield Steady Near November Lows

The yield on France’s 10-year government bond remained relatively stable at approximately 3.4%, maintaining its position near the lowest point observed since mid-November. This stability is attributed to investors anticipating significant economic data releases, particularly Friday’s preliminary inflation figures from Europe’s primary economies, to inform further monetary policy decisions. Earlier in the week, a minor decrease in French consumer confidence for November was observed. It is broadly anticipated that the European Central Bank will maintain steady interest rates through to 2026. By contrast, weaker-than-anticipated economic data from the United States, alongside dovish comments from several Federal Reserve officials, have bolstered the market's anticipation of a third Fed rate cut this December. Politically, Olivier Faure, leader of France’s Socialist Party, suggested that parliament might find common ground to agree on the 2026 budget, which could alleviate concerns regarding political stability in Europe's second-largest economy.