European Sovereign Yields Rise, Euro Depreciates Amid ECB Rate Hold Expectations.

European sovereign yields increased, with France's 10-year yield rising to 4.94% and the OAT-Bund spread widening to 148 basis points. The euro depreciated against the dollar and sterling, as markets anticipate the ECB to maintain current rates at its October meeting, while pricing in an 84% probability of a 25 basis point hike in December.