French government bond futures weaken Political turmoil triggers credit concerns.

On Monday, French government bond futures fluctuated lower, with the 10-year government bond futures December contract falling by about 0.1% in early trading. This decline was caused by Fitch's downgrade of France's credit rating from AA- to A+, citing reasons such as rising government debt, increased political polarization, and uncertainties in the fiscal outlook. Stephen Spratt, interest rate strategist for Asia-Pacific developed markets at Natixis Bank, said: "This could further exacerbate pressure on OATs relative to other European government bonds. Italian 10-year government bonds have already outperformed OATs in some indicators, and further deterioration in market sentiment in France in the short term could lead to a continued increase in the relative value of Italian government bonds."