30.10.202512:25:49UTC+0010-Year OAT Yield Hits Highest Since Mid-October

France's 10-year OAT yield surged to surpass 3.4%, marking its peak since October 13. This shift reflects investors' responses to the Federal Reserve's slightly assertive stance ahead of the European Central Bank's policy announcement scheduled for later today. The Federal Reserve, on Wednesday, reduced interest rates by 25 basis points for the second instance this year; however, Chair Jerome Powell expressed caution, stating that additional rate cuts in December are "not certain." In economic developments, France's GDP expanded by 0.5% in the third quarter, the most robust growth observed in over two years and exceeding the predicted 0.2%. This growth was fueled by a significant rise in exports and strong domestic demand. Politically, lawmakers passed a budget amendment aimed at doubling the digital services tax imposed on major tech corporations, though it awaits final endorsement. Meanwhile, opposition parties have signaled intentions to propose no-confidence votes against Prime Minister Sebastien Lecornu within a few weeks unless there are substantial tax hikes on large corporations and the wealthiest individuals.