Markets expect steady Fed policy as French debt spread nears 150 basis points
Photo: The Cryptonomist
Federal Reserve Governor Kevin Warsh’s silence on an October rate hike has shifted market expectations toward December, even as French borrowing costs and AI-related credit risks climb. In his October 19, 2026 commentary, Stephen Coltman, Head of Macro at 21shares , highlighted the contrast: easing US Treasury yields, mounting pressure on French debt and widening credit spreads among heavily indebted AI companies. Key takeaways Markets again expect an October Fed hold, with a possible hike deferred to December. France’s borrowing premium over Germany is approaching 150 basis points. Oracle’s credit spreads are moving closer to high-yield levels.
Source: The Cryptonomist
