FX.co ★ French Bond Yield Rises

The yield on France's 10-year OAT has surpassed 3.4%, marking a peak not seen since October 13. This rise comes as investors digest hawkish signals from the European Central Bank (ECB) and the Federal Reserve (Fed), along with robust data from Q3 GDP. The ECB maintained interest rates steady for the third meeting in a row, highlighting that the inflation outlook remains generally stable. Meanwhile, the Fed implemented a 25 basis point rate cut on Wednesday, but Fed Chair Jerome Powell warned that additional easing in December should not be considered guaranteed. In the third quarter, French GDP expanded by 0.5%, the fastest growth rate in over two years and above the anticipated 0.2%, propelled by increased exports and strong domestic demand. On the political front, legislators approved a budget amendment to double the digital services tax imposed on major tech companies; however, the measure still awaits final approval. In a move rooted in economic policy tensions, opposition parties have issued threats of no-confidence votes against Prime Minister Sebastien Lecornu if taxes on large corporations and affluent individuals are not significantly heightened.