FX.co ★ France 10-Year Bond Yields Steady Ahead of US Data

The yield on France's 10-year government bond remained steady at approximately 3.44%, as investors awaited postponed U.S. economic data, including the September employment report, for insights on the Federal Reserve's future policy decisions. Concurrently, the European Commission has adjusted its growth forecast for France, predicting a 0.7% GDP increase in 2025, a reduction from the earlier spring estimate of 1.2%. The Commission also foresees a gradual recovery with growth reaching 0.9% in 2026 and 1.1% in 2027. Domestic demand is anticipated to stay muted due to ongoing economic uncertainties and essential fiscal realignments. This perspective contrasts with recent comments from Bank of France Governor François Villeroy de Galhau, who indicated potential upward revisions in the growth forecasts for 2025-2026, highlighting the economy's resilience in the face of political instability. Politically, the National Assembly in France has temporarily halted the pension reform, thereby thwarting a no-confidence vote, although the final decision on the broader social security legislation remains pending.