FX.co ★ French 10-Year OAT Yield at Three-Month Low

France’s 10-year OAT yield slipped below 3.4%, reaching its lowest level since mid-November, as investors shifted their attention to the delayed US jobs report for clearer guidance on the Federal Reserve’s next policy steps. The data are expected to show a modest pickup in January hiring, helped by fewer layoffs in some seasonal sectors. However, downside risks persist after several US officials, including White House economic adviser Kevin Hassett, cautioned that job growth could slow in the coming months.

In the euro area, markets also assessed indications that the European Central Bank is broadly comfortable with the euro’s recent appreciation, alongside reports that Bank of France Governor François Villeroy de Galhau—seen as one of the more dovish policymakers—will exit his role earlier than previously anticipated. ECB President Christine Lagarde said last week that the inflation outlook remains in a “good place,” while downplaying concerns over the currency’s strength.