FX.co ★ German 10-Year Bund Yield Steady Amid French Political Shake-Up

The yield on Germany's 10-year Bund remained steady at 2.7% as markets absorbed the unexpected resignation of French Prime Minister Sébastien Lecornu. His departure followed President Emmanuel Macron's decision to maintain a largely unchanged cabinet, a move that has been criticized for its lack of political innovation. Investors are also considering the potential ramifications of Japan's expected shift towards more expansionary economic policies after the unexpected victory of fiscal dove Sanae Takaichi in the ruling party's leadership race. Meanwhile, market attention is focused on the contrasting monetary policy directions in Europe and the United States. The European Central Bank is broadly expected to keep interest rates unchanged in the upcoming months, whereas the Federal Reserve is forecasted to implement successive 25-basis-point rate cuts in its final two meetings of the year.