France’s 10-year OAT yield slipped to 3.3%, its lowest level since August 7, as investors moved into safer assets and weighed the odds of another ECB rate cut later this year. The decline in French yields mirrored the broader global bond rally. In the United States, 10-year Treasury yields retreated after softer-than-expected inflation data on Friday, compounded by ongoing concerns over potential disruptions linked to artificial intelligence. In Japan, government bond yields continued to edge lower after Prime Minister Takaichi’s decisive election victory earlier this month.
In the United Kingdom, weaker labor market data reinforced expectations that the Bank of England could deliver additional easing in 2026. Across the euro area, shifting views on the ECB’s policy path have also weighed on yields, with markets currently assigning roughly a 40% chance of one more rate cut before year-end. Investors now turn to Wednesday’s release of the Federal Reserve’s meeting minutes for further insight into the US monetary policy outlook.
