FX.co ★ France 10-Year OAT Yield Edges Down on Budget Progress

France's 10-year OAT yield declined to 3.56% as the market responded to updates on France's 2026 budget. The French Senate gave its approval to the budget on Monday, paving the way for discussions between both legislative houses slated for Friday, with a vote in the lower house anticipated by December 23. The government's goal is to limit next year's budget deficit to below 5% of GDP, a reduction from the estimated 5.4% this year. Investors are also turning their attention to the forthcoming European Central Bank meeting, where the likelihood of a rate hike is anticipated to be about 25% by December 2026 and roughly 50% by March 2027. Additionally, upcoming U.S. employment and inflation figures later this week could further shape global interest rate forecasts. In terms of economic data, Eurozone industrial production saw an uptick in October, indicating diminished trade uncertainties and a steady recovery in economic activity.