Group 1 - The core viewpoint is that Société Générale's strategists maintain a tactically optimistic stance on French government bonds, expecting good support in the coming months [1] - The investment position on French government bonds has shifted from defensive to tactical long due to the approval of the 2026 French budget [1] - The constructive outlook reflects reduced political pressure, at least until the presidential election in 2027 [1] Group 2 - Current French government bond spreads are considered attractive, and volatility is expected to remain moderate in the coming months [1] - Fundamental factors are not the main drivers of recent movements in French government bonds, although mid-term fundamentals still present challenges [1] - The market is unlikely to react significantly unless there is a series of rapid rating downgrades, as it views French government bonds as relatively attractive at current levels [1]

Core Viewpoint - French government bonds (OAT) have shown strong performance following the approval of the 2026 budget, with Société Générale's rate strategists maintaining a "tactically optimistic" outlook [1] Group 1: Market Sentiment - The strategists have shifted their stance on French government bonds from defensive to tactically bullish, triggered by the budget approval [1] - They believe that the yield spread is attractive and that volatility will remain moderate in the coming months [1] Group 2: Political and Economic Context - The constructive view reflects a reduction in political pressure, at least until the presidential election in 2027 [1] - The strategists note that the fundamentals are not driving recent market movements, and the medium-term fundamentals remain challenging [1] Group 3: Market Reactions - The market is expected to react significantly only in the event of a series of rapid rating downgrades; otherwise, French government bonds are seen as relatively attractive at current levels [1] - There is no expectation for yields to quickly converge with those of Italian government bonds [1]