France’s 10-year OAT yield climbed to 3.4%, near a two-week high, as investors digested October PMI data while awaiting US inflation figures later today for guidance on the Federal Reserve’s policy path. The French private sector contracted for the 14th consecutive month, with weakness in both services and manufacturing amid ongoing political uncertainty. By contrast, Eurozone business activity expanded at its fastest pace since May 2024, surpassing forecasts. Attention also turns to Moody’s scheduled credit rating review on October 24, amid speculation the outlook could shift from stable to negative following last week’s S&P downgrade. France’s 2026 budget remains under review, with socialists warning they could topple the government if their budget demands are not met, planning to file a no-confidence motion early next week unless billionaires are required to pay higher taxes.
