The yield on France’s 10-year government bond remained largely unchanged around 3.4%, hovering near its lowest level since mid-November, as investors awaited key economic releases, including Friday’s flash inflation readings for Europe’s largest economies, for further guidance on monetary policy. Earlier this week, French consumer morale for November showed a slight decline. The European Central Bank is widely expected to keep interest rates unchanged through 2026. In contrast, softer-than-expected US economic data, coupled with dovish remarks from several Federal Reserve officials, reinforced market expectations of a third Fed rate cut this December. On the political front, France’s Socialist Party leader Olivier Faure indicated that parliament could bridge divisions to reach a compromise on the 2026 budget, easing concerns about political stability in Europe’s second-largest economy.