France’s 10-year government bond yield remained steady at 3.49%, its highest level since October 9, as upward revisions to November’s Eurozone composite PMI and slightly stronger-than-expected inflation reinforced expectations that the ECB is unlikely to cut rates soon.
Yields had already risen on Monday, tracking gains in US and Japanese government bonds after Bank of Japan Governor Kazuo Ueda hinted at a potential rate hike later this month.
The HCOB Eurozone Composite PMI climbed to 52.8, above the preliminary estimate of 52.4, marking the strongest private-sector expansion since May 2023.
Meanwhile, Eurostat reported Eurozone inflation rose to 2.2% in November, slightly above the 2.1% forecast. Alongside recent ECB minutes showing limited urgency to ease policy, the data left market expectations largely unchanged, with investors broadly anticipating no rate changes through 2026.