France’s 10-year OAT yield edged up toward 3.6%, hitting a one-week high, following a modest global rise in borrowing costs after the Bank of Japan raised interest rates to their highest level since 1995. In Europe, the ECB left interest rates unchanged at its December meeting, as expected, with President Lagarde saying there was no discussion of hikes or cuts, leading money markets to scale back expectations of a rate increase next year. Meanwhile, the Bank of France upgraded its GDP forecasts, raising 2025 to 0.9% from 0.7% and 2026 to 1% from 0.9%, reflecting strong transport and aviation output and expected recovery in spending and investment. Despite stronger growth, the central bank kept a moderate inflation path, lowering 2025 forecast to 0.9% from 1%, keeping 2026 at 1.3%, and revising 2027 down to 1.3% from 1.8%. On the fiscal front, parliament continues negotiations on the 2026 budget, aiming to reach an agreement by December 23; failure could force emergency measures.