France’s 10-year OAT yield climbed above 3.4%, remaining close to its highest since October 13, as investors tracked the country’s budget discussions alongside hawkish signals from the ECB and Fed and a decline in inflation. Socialist Party leader Olivier Faure said he is seeking a compromise with the government over the 2026 budget, noting the initial draft is “already starting to improve,” including a higher corporate tax rate for large firms. On the data front, French inflation eased to 1% in October from 1.2% in September, below the expected 1.1%. GDP grew 0.5% in Q3, the fastest pace in over two years and above forecasts of 0.2%, supported by rising exports and strong domestic demand. On the policy side, the ECB held rates steady for a third consecutive meeting, describing the bank’s position as “good,” while Fed Chair Jerome Powell warned that further rate cuts in December are “not a foregone conclusion.”