18.12.202514:53:56UTC+00France OATs Hover Following ECB Decision

The yield on France's 10-year OAT remains steady at approximately 3.56% as traders adjust their expectations of an interest rate increase by the European Central Bank (ECB) for the next year. This follows the ECB's latest policy announcement where, as anticipated, they decided to keep interest rates unchanged. ECB President Christine Lagarde stated that there was no discussion regarding potential rate hikes or cuts, highlighting the absence of a predetermined direction for interest rates. She underlined the complexity and uncertainty of the current economic environment, which prevents the ECB from offering any forward guidance. As a result, money markets now estimate a mere 16% chance of a rate hike by the ECB in the coming year. On the fiscal side, a bicameral committee within France’s parliament will convene on December 19 to iron out variations between the budget drafts of the Senate and the National Assembly. Should they reach a consensus, the consolidated budget will be presented to the National Assembly for a final vote on December 23.