France’s 10-year OAT yield slipped to 3.56%, as markets reacted to France’s 2026 budget developments. The French Senate approved the budget on Monday, setting the stage for negotiations between both houses on Friday, with a lower house vote expected on December 23. The government aims to cap next year’s budget deficit at below 5% of GDP, down from an estimated 5.4% this year. Investors are also focused on the upcoming European Central Bank meeting, pricing in roughly a 25% chance of a rate hike by December 2026 and about 50% by March 2027. US employment and inflation data due later this week may further influence global rate expectations. On the data front, Eurozone industrial output accelerated in October, signaling easing trade uncertainties and a gradual recovery in economic momentum.