French Bonds Steady as Government Reaches Budget Compromise
Prime Minister Sebastien Lecornu secured a budget deal with leftist lawmakers as France awaits a credit rating review from Moody's Ratings.
French government bonds remained stable around 3.35% after Sebastien Lecornu, the Prime Minister of France, reached a budget compromise with leftist lawmakers. This agreement aims to prevent a political shakeup, although the country faces continued financial scrutiny. Moody's Ratings is scheduled to conduct a credit rating review this Friday, following previous surprise downgrades from S&P Global and Fitch.
Broader Euro zone markets saw German 10-year Bund yields hold at 2.55%. These bonds remained stable despite a significant overnight selloff in gold, which marked the largest one-day price drop since 2020. The European Central Bank is expected to maintain its current monetary policy at its next meeting.
