FX.co ★ France 10-Year Yield at 2-Week Low

France's 10-year government bond yield has declined to approximately 3.45%, marking the lowest point in the past fortnight, in line with trends among other eurozone nations. This decline follows the stabilization of bond markets and weaker-than-expected US labor statistics, which have strengthened predictions of a forthcoming Federal Reserve interest rate cut later this month. Despite these positive signs, political instability in France remains a concern for investors. Prime Minister François Bayrou is anticipated to face a decisive confidence vote in parliament on Monday, with the potential consequences of the government collapsing, the budget process being delayed, or even the possibility of snap elections. Recent last-ditch negotiations between Bayrou and opposition leaders have reached an impasse, making his defeat in the upcoming confidence vote nearly inevitable. The Socialist Party has withdrawn its support and reiterated its call for the establishment of a new left-wing coalition. Additionally, attention will be focused on next week's European Central Bank meeting, which is supported by tepid economic activity and inflation rates close to the 2% target.