FX.co ★ France Bond Yield Steady after Macron Appoints New Prime Minister

France’s 10-year government bond yield remained stable, hovering around 3.47%, slightly below the 3.5% mark reached on Tuesday. This steadiness follows President Emmanuel Macron's appointment of Sébastien Lecornu as Prime Minister, indicative of his strategy to persist with minority governance while advancing a pro-business agenda, which includes tax reductions and pension reforms, without altering the country's fundamental economic policies. Investors are now eagerly anticipating Thursday's European Central Bank (ECB) policy announcement and upcoming U.S. inflation figures. It is anticipated that the ECB will maintain interest rates for the second consecutive meeting, and the recent weak employment figures from the U.S. have bolstered expectations for a potential rate cut by the Federal Reserve in September. In the sphere of international relations, U.S. President Donald Trump has reportedly encouraged the European Union to introduce tariffs as high as 100% on India and China, aiming to exert additional pressure on Russia regarding the ongoing conflict in Ukraine. In a separate development, Poland reported successfully intercepting and downing Russian drones that breached its airspace during a significant offensive in western Ukraine.