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Eurozone economic momentum slows as mounting political instability and fiscal deficits in France widen sovereign bond spreads across European debt markets.
The European Central Bank is widely expected to pause interest rate cuts as widening French bond yield spreads and political volatility test eurozone financial stability.
French government debt rallied on Monday after credit rating agencies held sovereign ratings steady, easing near-term fiscal anxiety across European bond markets.
Renewed street protests and fiscal gridlock in Paris prompt political maneuvering, keeping eurozone sovereign bond spreads and European equities on edge.