France’s 10-year OAT yield fell back below 5% at the end of October after reaching its highest level since June 2002 last week, as a sell-off in French government bonds eased following Moody’s decision to maintain the country’s sovereign credit rating. The market also found some relief after weekend protests passed without the widespread unrest seen the previous week. European bonds gained further support from a modest decline in oil prices, while investors turned their attention to upcoming policy decisions from the European Central Bank and the US Federal Reserve. Moody’s reaffirmed France’s Aa3 rating late Friday, offering temporary relief as the government struggles to address strained public finances amid a fragmented parliament and growing political positioning ahead of next year’s presidential election. On the policy front, both the ECB and the Fed are widely expected to keep interest rates unchanged this week, leaving investors focused on their forward guidance.