The yield on the French 10-year OAT fell to 3.52% after testing the 14-year high of 3.6% in late September as markets weighed on the parliament's effort to curb France's widening deficit spending. PM Lecornu's government proposed capping the 2026 budget deficit at 4.7% of GDP, slightly above the 4.6% target set by the previous administration despite including significant spending cuts that sparked widespread opposition, which advocate higher public service spending, increased taxes on the wealthy, and higher pensions. Paris's inability to pass a budget that contains its increasing deficit spending drove OATs to significantly underperform European counterparts this year, driving the 10-year yield to briefly hover above that on the Italian BTP, traditionally seen as the benchmark for heavily indebted markets. Also pressuring bonds, higher inflation in the Eurozone consolidated bets that the ECB will refrain from delivering more rate cuts this cycle.