FX.co ★ French Yields Hover Near Two-Month Low

The yield on France’s 10-year OAT dipped to 3.36%, remaining near last week's two-month low of 3.31%. Investor attention is centered on a series of speeches from the European Central Bank this week, as they seek insight into the policy direction. The ECB will begin its pre-meeting blackout period on Thursday, in anticipation of next week’s interest rate decision. Market sentiment was bolstered by indications of easing trade tensions between the US and China, and the potential resolution of the US government shutdown. Nonetheless, caution lingers ahead of the release of delayed US inflation data on Friday, which could impact projections for Federal Reserve rate adjustments. Furthermore, focus shifts to Moody’s credit rating review on October 24, with expectations of France’s outlook changing from stable to negative, following the surprise downgrade of the country's credit rating by S&P Global Ratings last week.