France’s 10-year OAT yield (French government bond yield) rose to 4.6%, its highest level since July 2008, as oil prices rebounded amid continued uncertainty over US-Iran talks and investors assessed stronger-than-expected PMI (business activity survey) data. Eurozone private-sector activity expanded in September at its fastest pace in nearly three and a half years, strengthening expectations that the European Central Bank could raise interest rates further this year. ECB official Joachim Nagel said higher oil prices were becoming increasingly important for monetary policy, while Chief Economist Philip Lane warned that another energy-price surge could keep inflation elevated for longer. In the United States, hawkish Federal Reserve comments and strong PMI data also increased expectations of further rate hikes. Concerns about France’s public finances continued to weigh on sentiment as the government struggles to reduce spending. The budget deficit is now expected to widen to 5.4% of GDP this year, compared with 5.1% in 2025.