Market Information Tuesday 7 October 2025

French assets retreated as the new government collapsed within hours of being appointed. The CAC 40 slipped >1.3% with major lenders BNP Paribas, Société Générale and Crédit Agricole down 3–4%, while mid-caps fell 2.6%. The 10-year OAT yield climbed by almost 9 bps to around 3.56%, pushing the OAT–Bund spread to 85 bps (near the highest since January), and France 5Y CDS rose to 41 bps. The euro eased to $1.172, as investors judged there was no quick fix to France’s fiscal and political impasse.

The U.S. dollar advanced as fiscal-policy uncertainty weighed on Euro and Yen. USD/JPY briefly touched 150.47, its biggest daily gain since May, while EUR/JPY hit a record 176.25. EUR/USD slipped to 1.171 (intraday low 1.1649). Futures implied >95% odds of a Fed 25 bps cut in late October (with additional easing priced for December).

Bitcoin set a new record, rising to $125,836 yesterday. The move has been supported by strong institutional demand and a softer U.S. dollar backdrop (the DXY 98.09, down nearly 10% YTD), with policy signals also seen as constructive. Momentum indicators point to a strong up-trend after reclaiming $125k, though some strategists expect consolidation after the breakout.

The 6M Euribor increased with 2 basis points to 2.10% compared to previous business day. The 10Y Swap increased with 3 basis points to 2.71% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.