France’s 10-year bond yield fell toward 3.42%, tracking European and US peers, after Fed Chair Powell opened the door to rate cuts soon in his Jackson Hole remarks. However, he said that central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy. The ECB concluded its rate-cutting cycle in July after eight reductions, but markets still price in a 45% chance of another cut this year, with a pause expected in September. Meanwhile, recent data from Germany and the wider Eurozone showed private sector activity expanding at a faster pace in early August compared with July. Domestically, French services and composite PMI hit 12-month highs, while manufacturing PMI reached a three-month high, suggesting the economy is starting to stabilize.