FX.co ★ France 10-Year Bond Yield Little Changed

The yield on France's 10-year government bond remained stable at approximately 3.45%, maintaining its position near October's peak levels, in line with wider trends across Europe. Investor sentiment showed improvement due to increased risk appetite, buoyed by optimism that the U.S. government shutdown might soon be resolved. In Europe, the European Central Bank (ECB) is anticipated to keep interest rates steady for the remainder of the year. Projections suggest the deposit rate will be at 1.9% in December 2026 and rise slightly to 1.95% in March 2027, contrasted with the current rate of 2.0%. The market currently predicts a 40% likelihood of a 25-basis-point rate cut by September 2026. Meanwhile, in France, budget discussions progressed, with the National Assembly approving the revenue section of the 2026 Social Security Financing Bill (PLFSS). This approval enables legislators to address key articles, notably one proposing the suspension of the pension reform. This move by Prime Minister Sébastien Lecornu represents a significant concession to the Socialist Party (PS) and seeks to avert a vote of no confidence.