French central bank chief: markets may be overreacting on fiscal situation, budget likely to pass

A central bank governor publicly pushing back on market pricing is itself a signal worth noting: it suggests official concern that risk premia have moved beyond what fundamentals justify, and that the credibility of the budget process is now a live market variable rather than a procedural formality. The framing matters most for holders of French sovereign exposure, where perception of fiscal trajectory can drive spreads independently of the actual deficit path. Whether the governor's confidence is validated by the budget's passage, and whether market pricing converges toward or away from that view, is the open question.