France’s 10-year OAT yield hovered around 3.4%, near a two-week high, as investors weighed political uncertainty and awaited key central bank decisions later this week. The National Assembly on Monday reached a budget compromise by passing an amendment increasing taxes on the country’s largest companies, aiming to reduce the fiscal deficit from 5.4% this year to 4.7%. A Socialist Party threat to table a no-confidence motion over wealth taxes adds to uncertainty, though the government continues to oppose the left’s proposed levy on the wealthy. A critical vote on the 2026 budget is scheduled for next Tuesday. Markets also eye major central bank moves: the US Federal Reserve is widely expected to cut rates by 25 basis points on Wednesday, while the European Central Bank is anticipated to hold rates steady on Thursday.