Treasury Yields Turn Slightly Higher, French Bonds Outperform

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, October 26, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

U.S. Treasury yields increased during European trading on Monday, with the two-year yield rising 1.7 basis points to 4.699% and the 10-year yield climbing 0.5 basis points to 4.987%, according to Tradeweb data. French government bonds outperformed their peers after Moody’s Ratings affirmed France’s Aa3 credit rating on Friday, a move that many market participants had feared would result in a downgrade. ING strategists noted that the ratings affirmation provided relief for French OATs, although they warned of ongoing downgrade risks. Michael Nizard of Edmond de Rothschild Asset Management described France as a major area of concern for bond markets.

Background

• Money markets price in a 90% probability that both the Federal Reserve and the European Central Bank will leave interest rates unchanged during their decisions on Wednesday and Thursday, per LSEG data.
• The 10-year Treasury yield reached a 24-year high of 5.365% on October 7.
• SEB economist Elisabet Kopelman stated that the Fed’s rate path depends on the Middle East conflict, U.S. economic strength, and financial conditions, while maintaining a view that rates will rise again in December.
• BondBloxx strategist JoAnne Bianco highlighted that markets view October as a pause in tightening rather than the end of the cycle, with the key question being whether energy prices influence broader inflation dynamics.

Read the full article at wsj.com

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