Federal Reserve official MUSALEM said the U.S. government has been on an unsustainable fiscal path for years.

ECB accounts said policy should remain a "measured" response.

State Street Investment Management strategist Masahiko Loo said recent selling in French government bonds reflects both arbitrage unwind and a market reassessment of France’s fiscal risk. Hedge funds and active real-money investors closing arbitrage positions amplified moves after recent political headlines. Loo said investors are increasingly questioning France’s fiscal trajectory: the country has not recorded a budget surplus since 1974, and although officials say they intend to address fiscal challenges, the timing and details of measures are likely to face implementation hurdles. He expects elevated bond-market volatility could persist through the April–May 2027 presidential election cycle.