Euro bounces as falling French bond yields ease debt worries
TLT•The euro rose 0.5% to $1.127 on Tuesday after French bond yields fell, easing some concerns about euro zone debt markets. The dollar index dropped 0.4% to 101.75 after reaching an 18-month high on Monday.
1. Euro recovers
The euro rebounded on Tuesday after falling to a 17-month low on Monday. French bonds rallied as energy prices dropped, with the 10-year yield down more than 0.1 percentage points.
2. Debt market concerns
French debt has been hit by concerns over high borrowing and political uncertainty as politicians struggle to cap the budget deficit ahead of a divisive 2027 election. Commerzbank FX analyst Volkmar Baur said market jitters had eased somewhat but could return.
