France’s 10-year OAT yield eased below the 3.4% mark, touching its lowest level since mid-November, as investors turned their focus to the delayed US jobs report for clearer direction on the Federal Reserve’s next moves. The data is forecast to show a slight pickup in hiring in January, supported by reduced layoffs in certain seasonal industries. Still, downside risks remain after several US officials, including White House economic adviser Kevin Hassett, warned that job gains could slow in the coming months. In the euro area, investors also weighed signals that the European Central Bank is largely comfortable with the euro’s recent strength, as well as reports that Bank of France Governor François Villeroy de Galhau, regarded as dovish, will leave his post earlier than initially anticipated. ECB President Christine Lagarde said last week that the inflation outlook remains in a “good place,” while minimizing concerns about the currency’s appreciation.
