Passing the new French budget may face challenges, leading to rate volatility. US Treasury yields rise, possibly due to fiscal concerns and inflation risks.
US Treasuries experience a sell-off post Tuesday’s numbers, possibly due to unsolved fiscal concerns and inflation risks. The market sentiment is mixed, reflecting uncertainty.
French budget talks may cause volatility as the government aims for parliamentary approval. The budget includes spending cuts and unpopular measures.
Wednesday brings UK PMI data, eurozone retail sales figures, and US inflation data, providing insights into global economic conditions.
Overall, fiscal concerns and geopolitical tensions may impact bond markets, with EGB spreads possibly reaching their limits. The market remains uncertain amidst ongoing fiscal challenges.

Read more at Investing.com: Rates Spark: Politics and Fiscal Issues Muddy Waters