The yield on France’s 10-year government bond climbed toward 3.5%, reaching its highest level since October 9, following European peers higher as investors turned to riskier assets like stocks after upbeat earnings from AI giant Nvidia. Market attention remains on the delayed US jobs report for further signals on the Federal Reserve’s policy path, while the latest Fed meeting minutes also tempered expectations of a December rate cut. Meanwhile, in Europe, the ECB is widely expected to keep rates unchanged next year. The European Commission revised its GDP outlook for France, now projecting 0.7% growth in 2025, down from 1.2% in spring, with a gradual rebound to 0.9% in 2026 and 1.1% in 2027. Domestic demand is expected to remain subdued amid economic uncertainty and fiscal adjustments. This contrasts with Bank of France Governor François Villeroy de Galhau’s recent remarks, which suggested potential upward revisions for 2025–2026 growth.
