28.10.202510:28:21UTC+00France OATs Hold Two-Week High

France's 10-year OAT yield remained steady around 3.4%, approaching a two-week peak, as investors assessed political uncertainties and awaited significant central bank decisions scheduled for later this week. On Monday, the National Assembly achieved a budget agreement by approving an amendment that increases taxes on the nation's largest companies. This measure aims to reduce the fiscal deficit from 5.4% this year to 4.7%. Adding to the uncertainty, the Socialist Party has threatened to propose a no-confidence motion concerning wealth taxes, although the government remains opposed to the left's suggested tax on the affluent. A decisive vote on the 2026 budget is set for next Tuesday. Simultaneously, markets are closely monitoring notable actions from major central banks: the US Federal Reserve is broadly expected to lower rates by 25 basis points on Wednesday, while the European Central Bank is projected to maintain steady rates on Thursday.