The yield on France's 10-year OAT fell below 3.1%, down from a recent four-month high of 3.26%, as traders assess the economic and monetary landscape.
French 10-year OAT yield falls under 3.1%
Expectations are building that the ECB will proceed with interest rate cuts more assertively than the Fed, especially as Donald Trump's policies are projected to elevate inflation pressures, potentially limiting the Fed's capacity to lower borrowing costs. The ECB is anticipated to cut its key deposit rate by another 25 basis points in December, with further reductions expected to reach 2% by June.
Political news behind movements
Meanwhile, a second Trump term could pose economic challenges for Europe, with potential tariffs on major sectors like automotive and chemicals and renewed concerns over security and support for Ukraine. In Germany, Chancellor Olaf Scholz has indicated he may bring forward a parliamentary vote of confidence to before Christmas, raising the possibility of an early election.
