France’s 10-year OAT yield fell to 4.85%, tracking US Treasury yields lower following a US market holiday. Oil prices also ended a three-session rally as Russia eased diesel export restrictions, tempering supply concerns. Despite the decline, French borrowing costs remain near their highest levels in more than two decades, amid concerns over record public debt and political hurdles to fiscal consolidation. The government aims to narrow the budget deficit to 5% of GDP in 2027, but securing parliamentary backing for significant spending cuts remains uncertain ahead of next year’s presidential election. Last week, EU officials urged Paris to present a credible budget in line with the bloc’s fiscal rules, while French lawmakers are due to begin debating revenue measures this week. Investors are also awaiting Wednesday’s US CPI report and ECB policymakers’ remarks at the IMF–World Bank annual meetings for further clues on the monetary policy outlook.