France’s 10-year OAT yield fell towards 4.9%, tracking a decline in US Treasury yields following the Democratic sweep in the US midterm elections. A Democratic takeover of the House is seen as reducing the likelihood of further deficit-expanding legislation under the Trump administration, easing concerns over US government borrowing. However, persistent concerns over France’s own fiscal outlook continued to weigh on domestic bonds. Meanwhile, increasingly hawkish rhetoric from European Central Bank policymakers reinforced expectations of a tighter monetary policy outlook. Despite last week’s decision to leave interest rates unchanged, ECB officials signaled that further rate hikes may be necessary to contain inflationary pressures and prevent them from spilling over into wages.