French 10-year yield falls 8.5bps to 4.796%, 30-year down 8bps

A broad peripheral rally that leaves French 10-year yields above Italian paper is the detail worth noting — the spread relationship, not the outright move, is the signal. The fall is concentrated at the long end, with the two-year lagging, which points to duration and term-premium repricing rather than a shift in near-term rate expectations. Whether French yields continue to trade above Italian ones, and whether that inversion persists as the move extends across Spain and Greece, is the open question.